NEW DELHI: The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman came into force on Monday, providing tariff-free access for a majority of Indian exports and creating a strategic trade corridor to Gulf and African markets through Oman’s ports.
Under the accord, Indian exporters will receive immediate zero-duty access on nearly 99% of exports by value, covering 98.08% of Oman’s tariff lines.
“This balanced FTA opens doors to our exports to Oman while protecting livelihoods at home. The doors it opens are wide because Oman is a gateway to the wider GCC, East Africa and the Indian Ocean economy through its various ports,” Union Commerce Minister Piyush Goyal said. Oman’s logistics hubs at Sohar, Duqm and Salalah would provide Indian exporters easier access to the broader Gulf Cooperation Council (GCC) region and East African markets.
The pact assumes added significance amid rising geopolitical tensions in West Asia. Unlike most Gulf nations that depend heavily on shipping routes through the Strait of Hormuz, much of Oman’s coastline lies outside the Strait, along the Arabian Sea and the Gulf of Oman.
Trade experts note that major ports such as Salalah and Duqm remain accessible even if traffic through the Strait of Hormuz is disrupted.
“This allows Oman to continue functioning as a reliable trade and energy gateway during periods of regional conflict or instability,” said Ajay Srivastava, founder, the Global Trade Research Initiative.
Pankaj Khimji, advisor for Foreign Trade and International Cooperation at Oman’s Ministry of Commerce, Industry and Investment Promotion, said the country is willing to align its petrochemical and fertiliser exports with India’s needs. “India remains a major importer of the petrochemicals that Oman manufactures, and we can more than happily serve that requirement,” he said.
The FTA is expected to benefit labour-intensive sectors including gems and jewellery, textiles, leather, footwear, marine products, engineering goods, processed food and pharmaceuticals.
India has offered tariff liberalisation on 77.79% of tariff lines, covering 94.81% of imports from Oman by value, while retaining safeguards for sensitive sectors. “We have agreed with the Omani side that for investments made by Indian companies, Indian workers will be given preferential ability to serve, subject to local requirements,” Goyal said.
Piyush Goyal: Most parts of India-US pact finalised
Commerce and Industry Minister Piyush Goyal on Monday said India and the US have finalised most elements of the first phase of the bilateral trade agreement. The talks will take place in New Delhi from June 2-4. “...mostly everything is finalised. As you know, US ambassador said 99% of things have been finalised. Discussions are on about small issues, commas and full stops.”
Factory output expands at slower pace in April
India’s industrial production or IIP expanded at a slower pace of 4.9% in April due to tepid growth in the energy sector amid the West Asia crisis, according to official data released on Monday. The IIP’s growth rate was 3.2% in March 2026. This is the first data released after the revision of the base year to 2022-23 from 2011-12, rejigging index elements
Gross GST collections grew 3.2% in May
Gross GST collections rose 3.2% to over `1.94 lakh crore in May on higher supplies of goods and services, as well as collection from imports, government data showed on Monday. Net GST revenues went up 3.3% to `1.67 lakh crore. Gross GST collection was `1.88 lakh crore in May 2025. The govt has budgeted to mop up `10.19 lakh crore from GST in the current fiscal
