India-Oman CEPA in force, gives duty‑free access

A landmark trade agreement between India and Oman entered into force on June 1, 2026, at a critical moment for regional trade and energy security. The Comprehensive Economic Partnership Agreement (CEPA), signed in December 2025, grants India duty-free access to 98.08 percent of Oman's tariff lines, covering 99.38 percent of India's export value. This represents a dramatic improvement from the previous regime, where only about 15 percent of Indian goods entered Oman without tariffs.

The agreement's implementation comes amid significant disruption to trade routes through the Strait of Hormuz, a vital global oil and gas transit corridor that has faced instability since March 2025. This has heavily impacted India's broader trade with Gulf nations. Imports from the region fell from approximately $15 billion in April 2025 to $9.8 billion in April 2026, while Indian exports to the region declined from $4.4 billion to $2.7 billion in the same period. In stark contrast, India's trade with Oman surged, with imports growing by 246.4 percent from April 2025 to April 2026, driven by increased purchases of crude oil and urea.

Analysts point to Oman's unique geography as a key factor in this...