Muscat/New Delhi | December 30, 2025
The recently signed Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is continuing to reshape regional economic dynamics, drawing sustained attention across Middle Eastern policy circles and trade-focused media. Analysts say the pact marks one of the most consequential shifts in India’s Gulf engagement strategy in nearly a decade, deepening commercial integration and opening new channels for investment, mobility, and supply‑chain cooperation.
The agreement—signed in Muscat on December 18 by India’s Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik—has been widely described as a milestone in bilateral relations. It is Oman’s first bilateral trade agreement since 2006 and India’s second major CEPA in the Gulf region after its 2022 pact with the UAE.
A Strategic Pivot Amid Global Trade Realignments
The CEPA arrives at a moment when India is seeking to diversify export markets amid rising trade restrictions in Western economies, including U.S. tariffs and the European Union’s carbon border adjustment mechanism. According to reporting from The Indian Express, the Oman deal is part of New Delhi’s broader strategy to secure alternative markets and reduce exposure to regulatory barriers in the West.
Middle East–based analysts note that the agreement strengthens India’s foothold in a region increasingly central to global energy, logistics, and manufacturing supply chains. Coverage in Middle East Briefing highlights that the CEPA lowers tariff barriers, liberalizes services, and enhances professional mobility—key factors expected to boost India’s competitiveness across the Gulf and beyond.
Market Access and Sectoral Gains
Under the pact, India gains unprecedented market access, including zero‑duty treatment on 98% of tariff lines—an outcome described as “historic” by trade officials and industry groups. Oman has also offered broad access to labour‑intensive sectors such as textiles, leather, footwear, gems and jewellery, plastics, and furniture, according to Fortune India’s reporting on the agreement.
Indian exporters, particularly in traditional manufacturing sectors, are expected to benefit from reduced costs and simplified regulatory pathways. The commerce ministry has emphasized that the agreement opens new opportunities for small and medium enterprises, which form the backbone of India’s export ecosystem.
Regional Coverage Highlights CEPA’s Broader Impact
Middle Eastern media outlets have framed the CEPA as more than a bilateral trade instrument. Reporting from The Week underscores that the pact strengthens India’s strategic ambitions in the Gulf, positioning New Delhi as a long‑term economic partner in a region undergoing rapid diversification away from hydrocarbons.
Similarly, India Today’s Gulf-focused analysis notes that the agreement redefines India’s economic strategy in the region, aligning with Oman’s Vision 2040 development agenda and India’s push to expand its presence in West Asian markets.
A Foundation for Future Cooperation
Beyond trade in goods, the CEPA establishes frameworks for cooperation in services, investment, digital trade, and professional mobility. Policy experts say these provisions could pave the way for deeper integration in logistics, renewable energy, and technology sectors—areas where both countries have expressed strong interest.
The agreement also reinforces India’s role in regional supply chains connecting the Middle East, Africa, and South Asia. Analysts argue that as Gulf economies diversify and seek new partners, India’s growing manufacturing base and large consumer market make it an increasingly attractive collaborator.
Looking Ahead
With implementation now underway, both governments are expected to release detailed guidelines for businesses in early 2026. Industry associations in India and Oman are preparing sector‑specific outreach programs to help companies navigate new market opportunities.
As Middle Eastern coverage continues to highlight the CEPA’s significance, experts say the pact may serve as a template for future India–GCC economic agreements—potentially accelerating New Delhi’s long‑term goal of securing a region‑wide trade framework.
