India and Oman share one of the oldest trading relationships, with commercial and maritime links dating back thousands of years. From the movement of spices, textiles and frankincense to enduring people-to-people ties, trade has long been a cornerstone of this partnership. The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, 2026, reaffirms and strengthens this historic relationship by providing a modern framework to deepen trade, investment and economic cooperation for the future.India is amongst the top suppliers for Oman and bilateral trade has grown from $8.94 billion in FY2023-24 to $11.18 billion in FY2025-26, reflecting the growing complementarities between the two economies.An expansion of India’s trade tiesThe CEPA comes at a time when India is actively diversifying its trade partnerships and integrating more deeply with global value chains. Following agreements with the United Arab Emirates, Australia, the European Free Trade Association, the United Kingdom, New Zealand and the European Union, the Oman CEPA further strengthens India’s presence in a region that is central to its energy security, trade and strategic interests.The CEPA offers significant opportunities for Indian exporters. Oman has offered duty-free access on 98.08% of its tariff lines, covering 99.38% of India’s exports by value. Before the agreement, only 15.33% of India’s exports entered Oman at zero duty under the Most Favoured Nation regime. The CEPA, therefore, provides an immediate competitiveness boost across a broad range of sectors. In textiles and apparel, India already commands a 43% share of Oman’s woven apparel imports and 31% of knitted apparel imports. The removal of the existing 5% tariff will strengthen the competitiveness of Indian manufacturers against China, which is the other dominant supplier in this market. In the case of chemicals, India already supplies nearly 39% of Oman’s inorganic chemical imports, making it one of the leading players in the market. Tariff free access will only amplify this further.Likewise, engineering goods will also benefit. Oman imports over $3.7 billion worth of mechanical machinery and $3.3 billion worth of automotives annually, where India’s market share is only 5% and 2%, respectively. Preferential market access under the CEPA can help Indian exports of engineering goods expand significantly and deepen their presence in Oman’s infrastructure, construction and industrial sectors.In pharmaceuticals, where India holds around 10% market share, the agreement’s value lies not in tariff reductions but in regulatory facilitation. Products approved by leading international regulators will benefit from fast-tracked approvals, reducing compliance costs and accelerating market entry. As Oman’s pharmaceutical market continues to expand, Indian companies will be well-positioned to capture a larger share. Duty-free access for products such as meat, eggs, honey, butter and processed foods will further strengthen India’s already strong position. At the same time, sensitive sectors such as dairy, cereals, edible oils and several agricultural commodities have been kept outside tariff concessions, ensuring that domestic producers remain protected.Streamlining proceduresSignificant trade facilitation measures have been introduced. Oman will accept certificates issued by India’s Export Inspection Council (EIC), eliminating duplicative testing and inspections, while also recognising India’s organic (NPOP) and halal certification systems. There are dedicated sanitary and phytosanitary (SPS) and technical barriers to trade (TBT) provisions, which will enhance regulatory transparency and cooperation, and streamlined customs clearance, including fast-track processing for perishables, which will reduce costs and improve export efficiency.Another forward-looking aspect of the CEPA is its strong focus on services and professional mobility. Bilateral services trade stood at $863 million in 2024, with India enjoying a surplus of nearly $447 million. Yet, India’s share in Oman’s global services imports remains just over 5%, indicating substantial untapped potential.Oman has undertaken binding commitments covering professionals in sectors such as accounting, engineering, information technology, health care, education and consulting. Oman also raises the quotas for intra-corporate transferees, facilitating greater mobility of Indian professionals and specialists. Provisions relating to AYUSH and traditional medicine further create opportunities for Indian health care and wellness services in the Gulf.Strategic location advantageBeyond trade statistics, the CEPA has a larger strategic significance. Oman occupies a unique position at the crossroads of the Gulf, the Indian Ocean and East Africa. Its ports at Sohar, Duqm and Salalah are emerging as major logistics and industrial hubs. For Indian businesses, Oman can serve not only as a destination market but also as a gateway to the wider Gulf Cooperation Council (GCC) region and East African economies.The India-Oman CEPA once again demonstrates the evolution of India’s trade policy from tariff negotiations to comprehensive economic partnerships encompassing goods, services, investment, mobility and regulatory cooperation. Its benefits will extend from textile clusters in Tamil Nadu and the gems and jewellery industry in Gujarat to engineering hubs in Maharashtra and Punjab, and from pharmaceutical manufacturers in Telangana to seafood exporters in Andhra Pradesh and Kerala.The real test will now lie in implementation and utilisation. If businesses actively leverage the opportunities created by the agreement, the CEPA can significantly expand India’s export footprint, strengthen economic integration with the Gulf, and support the country’s broader ambition of becoming a globally competitive manufacturing and services powerhouse. For India, the agreement opens not only the Omani market but also a broader gateway to the Gulf and beyond.Anant Goenka is President, The Federation of Indian Chambers of Commerce and Industry (FICCI)