The implementation of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) on June 1, 2026, marks a significant milestone in bilateral economic relations, opening the door to expanded trade and investment opportunities across a wide range of sectors, including gems and jewellery, textiles, engineering products, pharmaceuticals, agriculture, and services.
The landmark agreement, signed in December 2025 after more than two years of negotiations, provides Indian exporters with duty-free access to over 98% of Oman’s tariff lines, covering nearly the entire value of India’s exports to the Gulf nation. The development is expected to accelerate trade flows between the two countries, which recorded merchandise trade worth USD 11.18 billion in FY 2025-26, compared to USD 10.61 billion in the previous fiscal year.
With Oman strategically positioned at the crossroads of the Gulf Cooperation Council (GCC), the Middle East, and East Africa, the CEPA is expected to strengthen India’s regional export footprint and create new pathways for businesses seeking access to these markets.
Addressing the launch of the agreement, Commerce and Industry Minister Piyush Goyal described Oman as one of India’s most reliable partners in the region and encouraged Indian exporters to capitalize on the enhanced market access and trade benefits offered under the pact.
The gems and jewellery sector is among the immediate beneficiaries of the agreement. Import duties of up to 5% on Indian jewellery products entering Oman have now been removed, significantly improving the competitiveness of Indian cut and polished diamonds, gold jewellery, silver jewellery, platinum products, and imitation jewellery in the Omani market.
The opportunity is substantial. While India’s global gems and jewellery exports are valued at approximately USD 29 billion annually, Oman imports around USD 1.07 billion worth of jewellery products each year. India’s exports of gems and jewellery to Oman currently stand at roughly USD 25.78 million, highlighting considerable scope for future expansion under the duty-free framework.
Industry stakeholders also expect the agreement to simplify supply chains and reduce logistics expenses. Historically, a significant portion of jewellery shipments destined for Oman were routed through Dubai, adding both cost and transit time. The new trade arrangement is expected to encourage direct exports, enabling faster deliveries, improved pricing efficiency, and stronger market penetration for Indian companies.
Demonstrating the industry’s readiness to leverage the agreement, Asian Star Group announced one of the first shipments under the new regime, preparing a USD 100,000 consignment for export to Oman immediately after the CEPA came into force.
Vipul Shah, Managing Director and CEO of Asian Star Co. Ltd. and former Chairman of GJEPC, welcomed the operationalisation of the agreement and acknowledged the efforts of the Ministry of Commerce & Industry and other stakeholders involved in bringing the pact into effect. He noted that the CEPA would create new trade avenues, deepen economic cooperation between the two nations, and generate significant growth opportunities for India’s gem and jewellery industry.
As businesses begin utilizing the agreement, the India-Oman CEPA is expected to emerge as a catalyst for stronger commercial engagement, enhanced export competitiveness, and long-term growth in one of the Gulf region’s most promising markets.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
