Officials aware of the development said India has protected its market from over 2,780 tariff lines on imports including gold and silver bullion, jewellery, dairy, tea, coffee and tobacco under its free trade agreement with Oman, which will become operational from Monday.
India has offered tariff liberalization on 77.79% of its over 12,550 tariff lines, covering 94.81% of the country’s imports from Oman by value. But several tariff lines have been placed on the exclusion list to protect manufacturing competition and farmer interests, the officials said, requesting anonymity.
The FTA adequately protects India’s sensitive areas. He said India has placed 2,789 tariff lines on the exclusion list, which include transport equipment, key chemicals, grains, fruits, vegetables, spices and products of animal origin.
He said sensitive value-chain industries like rubber, leather, textiles, footwear, petroleum oil and mineral-based products are protected to protect India’s manufacturing competitiveness.
“Strategic agricultural products like dairy, meat, grains, oilseeds, vegetable oils and sugar have been excluded. Jewellery, precious and non-ferrous metals and petroleum products are also protected,” an official said.
Tariff-rate quota (TRQ) has been put in place to restrict imports of sensitive goods like marble, dates, petrochemicals and plastics for India.
Unlike its FTA with the United Arab Emirates (UAE), India has not liberalized precious metals like gold under the Oman deal. Under India’s FTA with UAE, TRQ-based duty concessional import of gold is allowed. TRQ is a trade mechanism that allows the import of only a specific quantity of any specified product to be imported at a concessional tariff.
Similarly, the agreement also took care of Oman’s sensitivities by keeping cigarettes, tobacco, alcohol and other beverages out of the deal.
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed on December 18 last year, is scheduled to come into force from June 1, officials said. The CEPA was signed in Muscat by Commerce Minister Piyush Goyal and his Omani counterpart Qais bin Mohammed Al Yusuf in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tariq. The two countries began negotiations for CEPA in November 2023.
Officials quoted above said CEPA ensured almost 100% duty-free market access for India’s exports to Oman, covering 98.08% of Oman’s tariff lines, representing 99.38% of Indian exports by value.
The agreement will benefit Indian exports of textiles and apparel, agricultural and processed food products, transport equipment, precision instruments, marine products and gems and jewellery, among others. He said all zero-duty concessions would come into effect from June 1.
Officials said Oman is an important strategic partner in the region and a major gateway for Indian goods and services to the broader West Asian region and Africa. He said rules of origin could be applicable for re-export of goods after value addition in Oman, which is practical as there is enough land available there to set up facilities.
After initial resistance, which was a reason to postpone the signing of the deal to March 2024, Oman agreed to raise the limit under its Omanisation programme, technically known as intra-corporate transferees (ICTs) in trade deals. Oman has increased the ICT cap from 20% to 50%, enabling Indian companies to deploy a larger share of managerial, executive and specialist staff, exceeding their commitments under other trade agreements. The basic principle of the Omanisation program is to replace expatriates with trained local personnel. It mandates a sector-specific percentage or quota, which is frequently revised.
To boost India’s services exports, the agreement provides more liberal entry and living conditions for skilled professionals in key sectors such as accountancy, taxation, architecture, medical and allied services.
According to government data, India-Oman bilateral merchandise trade stood at $11.2 billion in 2025-26, up 5.56% from $10.61 billion in 2024-25, with the trade balance favoring the Gulf country. In FY26, India exported goods worth $4.02 billion to Oman and imported goods worth $7.17 billion from the country.
India’s major imports from Oman include petroleum crude and products ($3.69 billion worth), salt, sulphur, earth and stones ($506 million), ores, slag and ash ($410 million), chemicals ($943 million), fertilizers ($844 million), and plastics ($196 million).
Major exports from India to Oman include petroleum products ($1.67 billion), chemicals ($405 million), meat, fish and dairy items ($159 million), fruits, nuts and vegetables ($82 million), coffee, tea and spices ($23 million), and cereals ($174.4 million), various types of machinery, ships, boats, iron and steel ($746.79 million).
