Daijiworld Media Network - New Delhi

New Delhi, Dec 18: India on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA) with Oman to enhance trade and investment ties and expand India’s footprint in the Middle East amid rising U.S. tariffs. The pact aims to diversify India’s export markets and strengthen strategic economic cooperation.

Under the agreement, Oman offers zero-duty access on over 98% of its tariff lines, covering major Indian exports such as gems and jewellery, textiles, pharmaceuticals, and automobiles. In return, India will cut tariffs on about 78% of its import lines from Oman, representing 95% of imports by value. India and Oman currently maintain annual trade exceeding $10 billion.

Highlighting the strategic significance, Prime Minister Narendra Modi said, “This pact will set a new pace for our trade, add new trust to our investments, and open doors to opportunities across multiple sectors.”

The deal is Oman's first bilateral agreement since 2006 and comes amid India’s efforts to counter high U.S. tariffs, including a 50% duty on key goods imposed by former President Trump. Trade experts note that the pact is as much about geopolitics and regional presence as it is about tariffs, particularly given Oman’s location along the Strait of Hormuz, a major oil transit route.

The CEPA is expected to significantly boost gem and jewellery exports, projected to rise from $35 million to about $150 million over three years. Sensitive items such as dairy, tea, coffee, rubber, and tobacco have been excluded, while the agreement also opens opportunities in Oman’s $12.5 billion services import market, where India currently holds a 5.3% share.

This landmark deal strengthens India-Oman ties and signals India’s growing focus on Middle East economic engagement and strategic trade diversification.