The agreement, coming into force on June 1, is expected to expand duty-free market access, enhance LNG cooperation and position Oman as a critical logistics gateway for India amid regional geopolitical uncertainty.
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), set to take effect from June 1, 2026, is expected to significantly expand bilateral trade, strengthen India’s energy security and improve supply-chain resilience, according to a report by Rubix Data Sciences.
The report described the agreement as strategically important for India’s deeper economic integration with the Gulf region through lower tariffs, wider market access and enhanced investment cooperation.
Oman’s role in India’s energy ecosystem has grown substantially in recent years, particularly amid disruptions around the Strait of Hormuz and wider geopolitical tensions in West Asia.
According to the report, India’s imports of petroleum gases from Oman nearly doubled from around USD 0.7 billion in FY2022 to approximately USD 1.4 billion in FY2026.
The Gulf nation also emerged as India’s largest LNG supplier during March and April 2026, accounting for nearly 30–31 per cent of India’s total LNG imports during that period.
“This development further reinforces Oman’s strategic importance in India’s evolving energy security architecture and highlights the rationale behind deeper institutional economic integration through the India-Oman CEPA,” the report stated.
The agreement is also aligned with India’s long-term energy diversification and connectivity strategy, particularly through the proposed Middle East-India Deepwater Pipeline (MEIDP), which aims to directly connect Oman with Gujarat.
The proposed 2,000-kilometre subsea gas pipeline, estimated to cost around USD 4.7–4.8 billion, is expected to supply nearly 31 million metric standard cubic metres per day (mmscmd) of gas to India while bypassing the strategically sensitive Strait of Hormuz.
Rubix Data Sciences noted that the pipeline could significantly strengthen India’s long-term energy security and reduce dependence on vulnerable maritime chokepoints.
The CEPA is also expected to boost overall trade momentum between the two countries. Bilateral goods trade between India and Oman increased 5.7 per cent year-on-year to USD 11.2 billion in FY2026, outperforming several other Gulf Cooperation Council (GCC) partners.
Under the agreement, India will receive 100 per cent duty-free market access across 98.08 per cent of tariff lines in Oman, covering nearly 99.38 per cent of India’s export value.
The report identified strong export opportunities for Indian industries including engineering goods, pharmaceuticals, textiles, electronics, chemicals, plastics and marine products.
Engineering exports to Oman are projected to rise to between USD 1.3 billion and USD 1.6 billion by 2030, supported by tariff elimination on machinery, iron and steel products and automobiles.
India’s textile sector is also expected to benefit significantly, with several products previously facing duties of around 5 per cent now gaining zero-duty access.
In agriculture and processed food exports, India already accounts for more than 10 per cent of Oman’s agricultural imports and remains the country’s second-largest supplier.
Duty-free access for products such as rice, meat, eggs and seafood feed is expected to further improve India’s competitiveness in the Omani market.
The report further highlighted Oman’s growing role as a logistics and trade gateway for India amid continued uncertainty in West Asia.
Ports such as Sohar and Salalah, both located outside the Strait of Hormuz, are increasingly being explored as alternative export hubs for Indian goods destined for the Gulf region.
“The CEPA and the proposed MEIDP gas corridor position Oman as a trade partner and, more importantly, a critical gateway for India’s future energy connectivity and resilient supply-chain strategy in the Gulf region,” the report added.
With inputs from agencies
First Published:
May 29, 2026, 17:33 IST
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