The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is expected to play a significant role in strengthening India’s energy security, export growth and trade resilience, according to a report. The agreement comes at a time when global trade patterns are undergoing major realignments due to rising tariffs, geopolitical tensions and supply-chain disruptions. Under the pact, India will secure 100% duty-free market access in Oman across 98.08% of tariff lines, covering 99.38% of India’s export value. The agreement is expected to improve market access, reduce tariff barriers and encourage greater investment and supply-chain integration between the two countries. Bilateral goods trade between India and Oman increased by 5.7% year-on-year to Rs. 97,440 crore (US$ 11.2 billion) in FY26, outperforming several Gulf Cooperation Council (GCC) peers. The report noted that the agreement is likely to revive trade momentum and strengthen long-term economic cooperation.
The CEPA is expected to generate strong export opportunities for Indian sectors such as engineering goods, pharmaceuticals, marine products, textiles, electronics, chemicals and plastics. Engineering exports to Oman are projected to rise to between Rs. 12,595.7 crore (US$ 1.3 billion) and Rs. 15,502.4 crore (US$ 1.6 billion) by 2030, supported by tariff elimination on machinery, iron and steel products and motor vehicles. The report also highlighted Oman’s growing importance in India’s energy diversification strategy. Once operational, the Middle East-India Deepwater Pipeline (MEIDP) is expected to significantly enhance India’s long-term energy security and supply diversification efforts. The agreement is further expected to support MSME exporters, improve trade competitiveness and reinforce India’s broader strategy of expanding trade partnerships in an increasingly uncertain global economic environment.
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