India and Oman have taken a decisive step toward deepening economic integration with the signing of the India–Oman Comprehensive Economic Partnership Agreement (CEPA)—a pact that significantly strengthens agricultural trade, rural value chains, and agri-export opportunities alongside broader commercial ties.

Signed under the leadership of Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tarik, the agreement was formalised by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef. The CEPA marks India’s second major free trade agreement in six months, following the United Kingdom pact, and reinforces India’s strategic engagement with the Gulf as a critical food, trade, and investment partner.

A strategic opening for Indian agriculture

For Indian agriculture, the CEPA delivers near-universal market access. Oman has granted zero-duty access on 98.08 percent of its tariff lines, covering 99.38 percent of India’s exports by value, creating a powerful platform for the expansion of Indian agri-exports into the Gulf and onward into the Middle East and Africa.

Key beneficiaries include agricultural produce, processed foods, organic products, and agri-based value-added goods, supported by mutual recognition of standards and certifications. Notably, Oman will accept India’s National Programme for Organic Production (NPOP) certification, easing entry for Indian organic farmers and exporters while reducing compliance costs.

The agreement also facilitates mutual recognition arrangements for Halal certification, a critical enabler for Indian food exporters seeking scale in Islamic markets. Together, these provisions significantly lower non-tariff barriers that have historically constrained agricultural trade despite tariff concessions.

Balancing openness with food security

While unlocking export opportunities, India has preserved policy space to protect sensitive domestic sectors. Products such as dairy, tea, coffee, rubber, tobacco, and select labour-intensive items remain outside tariff concessions, reflecting a calibrated approach that balances trade liberalisation with farmer livelihoods and food security concerns.

India, in turn, will liberalise 77.79 percent of its tariff lines, covering 94.81 percent of imports from Oman by value, with tariff-rate quotas applied to products of export interest to Oman that are sensitive for Indian producers.

Strengthening agri-value chains and rural employment

Beyond tariffs, the CEPA addresses structural bottlenecks across the agri-value chain. Provisions on standards, conformity assessment, and regulatory cooperation are expected to improve predictability for exporters and encourage investments in cold chains, food processing, and agri-logistics.

For India’s rural economy, this translates into stronger demand for farm produce, higher value realisation, and employment generation across processing, packaging, and export-linked services—particularly benefiting MSMEs, farmer collectives, women-led enterprises, and artisanal producers.

Services, mobility, and agri-linked opportunities

The agreement also carries indirect gains for agriculture through its ambitious services commitments. Oman has opened 127 services sub-sectors, including research and development, education, health, and professional services—areas that support agri-innovation, food safety, veterinary services, and agribusiness management.

Enhanced mobility provisions allow greater temporary entry and longer stays for Indian professionals, supporting knowledge transfer and capacity building across agri-processing, food technology, and allied services. The provision for 100 percent foreign direct investment by Indian companies in major services sectors further enables agribusiness firms to establish regional operations in Oman.

Traditional medicine and food-health convergence

A landmark feature of the CEPA is Oman’s first-ever comprehensive commitment on traditional medicine across all modes of supply, opening new avenues for India’s AYUSH ecosystem, medicinal plants, and wellness-linked agri-products. This provision strengthens the intersection of agriculture, health, and medical value travel—an emerging pillar of India’s rural bio-economy.

A gateway to the Gulf and Africa

With bilateral trade already exceeding $ 10 billion, a resident Indian community of nearly 700,000 people, and annual remittances of around $ 2 billion, Oman serves as a strategic bridge for Indian goods and services. Over 6,000 Indian businesses operate in Oman, many with deep historical roots, positioning the CEPA as a catalyst for expanding agri-trade flows into the wider region.

Commerce Minister Piyush Goyal described the agreement as a balanced framework that expands opportunities for exporters while protecting national interests, noting that it reinforces India’s commitment to inclusive growth that benefits farmers, workers, and MSMEs.

A trade pact with food at its core

As global food systems face volatility from climate stress, geopolitics, and supply disruptions, the India–Oman CEPA signals a strategic shift—from transactional trade toward long-term food and value-chain partnerships. For Indian agriculture, it opens a stable, high-value market while anchoring farmers more firmly within India’s global growth story.