The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, 2026, represents a major advance in economic ties between the two countries. It creates broader trade and investment opportunities across diverse sectors such as gems and jewellery, textiles, engineering goods, pharmaceuticals, agriculture and services.
Signed in December 2025 after more than two years of negotiations, the agreement gives Indian exporters duty-free access to over 98% of Oman’s tariff lines, effectively covering almost the entire value of India’s exports to the Sultanate. This preferential access is expected to boost bilateral trade, building on merchandise trade of USD 11.18 billion in FY 2025-26, up from USD 10.61 billion the previous year.
Oman’s strategic location at the crossroads of the Gulf Cooperation Council, the broader Middle East and East Africa enhances the value of the CEPA for Indian businesses. The agreement is likely to strengthen India’s regional export footprint and open additional routes for companies seeking entry to adjacent markets.
Commerce and Industry Minister Piyush Goyal called Oman one of India’s most reliable partners in the region and urged Indian exporters to make full use of the improved market access and trade benefits under the pact.
The gems and jewellery sector stands out as an immediate beneficiary. Duties of up to 5% on Indian jewellery products entering Oman have been removed, boosting the competitiveness of Indian cut and polished diamonds, gold and silver jewellery, platinum pieces and imitation jewellery in the Omani market.
The potential is considerable. India’s global gems and jewellery exports are valued at about USD 29 billion annually, while Oman imports roughly USD 1.07 billion worth of jewellery each year. Current Indian exports of gems and jewellery to Oman are approximately USD 25.78 million, indicating significant room for growth under the new duty-free provisions.
Industry participants also anticipate that the CEPA will streamline supply chains and lower logistics costs. Previously, many jewellery consignments bound for Oman were routed through Dubai, increasing both cost and transit time. Direct shipments under the new trade arrangement should shorten delivery times, improve pricing competitiveness and allow Indian firms to deepen their market presence.
Illustrating early uptake, Asian Star Group announced one of the first exports under the new regime, preparing a USD 100,000 consignment for shipment to Oman shortly after the CEPA took effect.
Vipul Shah, Managing Director and CEO of Asian Star Co. Ltd. and former Chairman of the Gems and Jewellery Export Promotion Council, welcomed the operationalisation of the agreement and acknowledged the role of the Ministry of Commerce & Industry and other stakeholders. He said the CEPA would open fresh trade channels, strengthen economic cooperation and deliver meaningful growth opportunities for India’s gems and jewellery industry.
As businesses begin to operationalise the agreement, the India-Oman CEPA is poised to act as a catalyst for deeper commercial engagement, improved export competitiveness and sustained growth in one of the Gulf region’s most promising markets.