India-Oman Trade Pact Reduced Tariffs in June
Exporters and service firms can now leverage lower tariffs and expanded market access between the two nations.
Updated on Oct. 13, 2026 in International Trade
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The India-Oman Comprehensive Economic Partnership Agreement entered into force on June 1, 2026, lowering trade barriers for businesses in both countries. This pact facilitates easier market entry for over 6,000 Indian establishments operating in Oman.
Why it matters
The agreement aligns with Oman Vision 2040, aiming to boost industrial development by streamlining trade costs and enhancing professional mobility. It creates new competitive opportunities for firms by formalizing market access across 127 services subsectors.
Bilateral trade totaled $10.61 billion in the 2024-2025 financial year, supported by Oman granting duty-free access to 98.08% of its tariff lines. India reciprocated with tariff liberalisation on 77.79% of its lines while maintaining protections for sensitive sectors like food grains.
The players
India
A $3.7 trillion economy and regional trade power focused on diversifying export markets.
Oman
A Middle Eastern nation executing its Vision 2040 development plan to shift toward diversified industrial output.
Export Inspection Council
The Indian agency responsible for quality control and certification of export goods.
The details
The pact simplifies customs logistics by accepting certificates from India's Export Inspection Council to minimize repeat testing at Omani ports. It also establishes frameworks for professional mobility and intra-company transfers, easing human capital movement for firms with operations in Sohar, Salalah, and Duqm. While liberalizing most trade, India retained specific safeguards for dairy, edible oils, and food grains to protect domestic producers.
Timeline
Bilateral trade reached $10.61 billion during the 2024-2025 financial year.
The agreement entered into force on June 1, 2026.
Market Landscape
This agreement follows a pattern of bilateral pacts designed to support the specific industrial goals outlined in Oman Vision 2040. It updates the trade environment by formalizing preferential access that previously lacked a comprehensive bilateral framework.
Operators in both nations should review the new tariff schedules to identify potential cost savings on cross-border shipments. Businesses should also evaluate their HR policies to leverage the new provisions for professional mobility and intra-company transfers.
The takeaway
The pact effectively lowers entry barriers for services and goods, making expansion into Oman more predictable for Indian firms. Operators should audit their supply chain documentation to ensure they meet the criteria for duty-free status under the new rules.
Further reading
For more on shifting trade policies, visit the International Trade section.
Source note: This article includes information reported by Madhyamamonline.
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