On December 18, 2025, India and Oman officially inked a landmark Free Trade Agreement (FTA), marking one of New Delhi’s most significant trade breakthroughs in recent years.
The pact places 406 tariff lines under immediate tariff elimination, giving Indian exporters unprecedented access to Oman’s rapidly expanding market.
With agriculture exports alone tapping into an import demand of USD 1.34 billion, the agreement is expected to create stronger income opportunities for Indian farmers and boost bilateral trade.
The Comprehensive Economic Partnership Agreement (CEPA) was signed in Muscat during Prime Minister Narendra Modi’s two-day visit.
According to Fortune India, the deal grants India zero-duty access on 98.08% of Oman’s tariff lines, covering nearly 99.38% of India’s exports by value. This includes major labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, plastics, and sports goods.
Had an outstanding discussion with the Sultan of Oman, His Majesty Sultan Haitham bin Tarik. Appreciated his vision, which is powering Oman to new heights. Thanked him for his efforts that have ensured our nations sign the historic CEPA. It is indeed a new and golden chapter of… pic.twitter.com/bSapEwO8tT
— Narendra Modi (@narendramodi) December 18, 2025
406 Tariff Lines Under Immediate Elimination
The agreement’s most impactful feature is the immediate removal of tariffs on 406 product lines.
This move is expected to greatly reduce export costs for Indian businesses and improve competitiveness in the Gulf region. For agriculture, the FTA opens doors for products like rice, spices, fruits, vegetables, and marine goods—sectors where India already holds strong global demand.
Oman’s agricultural import market, valued at USD 1.34 billion, presents a major opportunity for Indian farmers.
With tariff barriers removed, exporters can now supply products at more competitive prices, helping them secure long-term contracts and expand their presence in West Asia.
🇮🇳🤝🇴🇲 India–Oman FTA Inked!
➔ 406 tariff lines placed under immediate tariff elimination
➔ Indian agriculture exports gain improved access to Oman’s market, tapping into an import demand of USD 1.34 billion and creating better income opportunities for farmers#IndiaOmanCEPA… pic.twitter.com/jCqwjhAFyl
— PIB India (@PIB_India) December 18, 2025
Boost to Trade, Services, and Strategic Ties
Beyond goods, the CEPA also covers services and investments. According to Livemint, bilateral trade between India and Oman stood at USD 10.6 billion in 2024–25, and the new FTA aims to push this figure higher in the coming years. The agreement also includes commitments to ease professional movement, regulatory processes, and business operations.
India has also agreed to reduce duties on key Omani exports such as dates, marble, and petrochemicals—products that support Oman’s domestic industries.
The pact mirrors the structure of the India–UAE CEPA, which has already boosted India’s trade footprint in the Gulf.
Explore more official announcements in our Press Release section.