The proposed Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is in its final stages, with an announcement expected shortly, according to an official cited in media reports. The text of the trade agreement is currently being translated into Arabic in Oman, after which it will require cabinet approval from both countries.
“Both countries have, in principle, decided to announce the conclusion and signing together,” the official said, adding that the timeline for completion is much less than the two to three months initially speculated.
Negotiations for the CEPA began in November 2023, aiming to strengthen trade and investment ties between the two nations. Such agreements typically involve the major reduction or elimination of customs duties on most goods traded and the easing of norms to facilitate trade in services and investment flows.
A key discussion point was Oman’s ‘Omanization’ policy, which requires private firms to employ a set quota of Omani nationals. India sought specific exemptions to protect its sizable expatriate community of more than 480,000 Indians, aiming to ensure they are not unduly impacted by any future changes to the policy.
Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries. India already has a similar agreement with the UAE, which came into effect in May 2022.
Bilateral trade between India and Oman exceeded $10 billion in 2024–25, with India exporting goods worth $4.06 billion and importing $6.55 billion. Petroleum products and urea make up more than 70% of India’s imports from Oman. Other key imports include propylene and ethylene polymers, petroleum coke, gypsum, chemicals, and iron and steel.
The CEPA is expected to boost trade volumes, diversify export portfolios, and create new avenues for investment, further cementing India’s economic footprint in the Gulf region.
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