September 23, 2025
Negotiations have concluded, and the agreement is undergoing legislative and administrative procedures
The CEPA aims to reduce customs duties, promote services, and attract investments
India’s imports from Oman are dominated by petroleum products and urea, accounting for over 70%
Both countries want to diversify trade into new commodities and services beyond energy and petrochemicals
India and Oman are on track to sign the Comprehensive Economic Partnership Agreement (CEPA) in the near future, with both countries working to diversify their trade beyond oil and petrochemicals. According to Oman’s Ambassador to India, Issa Saleh Abdullah Saleh Alshibani, negotiations have been completed, and the agreement is now undergoing legislative and administrative processes before formal signing.
Talks on the CEPA began in November 2023, aiming to reduce or eliminate customs duties on a wide range of goods while easing rules to boost services and attract investments. The Ambassador noted that India’s earlier CEPA agreements with other countries have shown strong trade benefits, and the India-Oman deal is expected to deliver similar outcomes.
Currently, India’s imports from Oman are dominated by petroleum products and urea, which together make up over 70% of imports. Other key imports include propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel. The Ambassador stressed that oil and petrochemical prices largely dictate the trade balance, but both sides see the CEPA as a way to expand the relationship into new commodities and services.
Oman is India’s third-largest export destination within the Gulf Cooperation Council (GCC). India already has a CEPA in place with the UAE, signed in May 2022. Bilateral trade between India and Oman reached US$10.61 billion in 2024–25, and there are over 6,000 India-Oman joint ventures in Oman, representing investments of more than US$776 million.
Source: Economic Times