June 5, 2026

Source: Ministry of Commerce & Industry, Government of India | Press Information Bureau India Oman CEPA export opportunity MSME Until June 1st this year, there was a quiet competition between Italian jewellers, Thai seafood processors and Chinese engineering exporters for a share in the USD 28 billion import market in Oman; a market which had been dominated by Indian players. Until June 1st this year, outsiders — Italian jewellers, Thai seafood processors and Chinese engineering exporters — enjoyed a quiet lead in the USD 28 billion import market in Oman, which was dominated by Indian players. They both had the same 5% tariff. So did the Indians! This balance is now out of equilibrium. Under the new norms of India-Oman CEPA, 99.38% of India’s exports are being duty-free. Not next quarter. Today. Imagine the implications for a textile exporter in Surat, a seafood processor in Andhra Pradesh or a pharmaceutical manufacturer in Ahmedabad. From Italy, Turkey, Thailand and China, each competitor is now at a structural disadvantage in Oman because of the tariffs they still have to pay. India and Oman have also signed an all-embracing bilateral trade pact, a first for a country after the USA. This exclusivity is what creates a time-sensitive window. MSMEs and Industrial Units that are first in the queue, getting Compliant, Export Ready and connected to Oman’s Ports will grab their market share before it is too late. Oman is not a far-remote destination in the Gulf. It provides access to the broad market of the rest of the GCC and East Africa via hubs in Sohar, Duqm and Salalah. Three ports that link South Asia with some of the world’s fastest growing consumer markets. View Full Project Details: Investment Opportunities and Business Ideas in Oman (Middle East) The Gap That Has Held Indian Exporters Back Bilateral trade between India and Oman was worth USD 11.18 billion during the previous financial year as compared with USD 10.61 billion during the previous year. Impressive on paper. However, when looking carefully at sector level data, the difference is stark. Bring gems and jewellery. Oman’s total imported market for this is USD 1.07 billion per year. India’s current share? Just USD 25.78 million, less than 2.5%. The clusters, which are key suppliers of polished diamond and gold jewellery export to the world, are excluded from the market which is sitting on India’s doorsteps, as the Italian, Turkish and Thai competitors are also paying the same import duty of five per cent as the Indian exporters. Marine products tell an even more clear-cut story. Oman imported USD 35.3 million in seafood and India, despite being home to some of the biggest clusters of shrimp and fish processing in the world in Andhra Pradesh, Kerala, Tamil Nadu and Gujarat, had only imported USD 10 million of seafood. A 5% import duty on shrimp and cuttlefish was sufficient to kill the exporters’ business, operating on slim margins. Oman’s import market is worth USD 302.84 million and expanding at 6.6% CAGR in the pharmaceutical sector. Approve­ment delays, duplicate inspections and regulatory bumps delayed Indian generic drug makers from gaining market access and took months to approve. The USFDA, EMA or UK MHRA approved products now receive marketing authorization in Oman within 90 days. The acceleration is not just a minor bureaucratic adjustment but a structural change. In the previous financial year, India exported USD 875.83 million of engineering goods to Oman, such as machinery, electrical products, automobiles, iron and steel. The actual “total addressable market” is much bigger. The imports of electronics are only USD 1.7 billion in Oman, whereas India claims only USD 146 million. Source: Ministry of Commerce & Industry, Press Information Bureau | APEDA Export Statistics TABLE 1: Sector-wise Export Opportunity Under India-Oman CEPA Sector India’s Current Exports to Oman Oman Market Size Duty Before CEPA CEPA Duty Status Gems & Jewellery USD 25.78 mn USD 1.07 bn Up to 5% Zero (Day 1) Marine Products USD 10 mn USD 35.3 mn Up to 5% Zero (Day 1) Agriculture & Processed Food USD 552.85 mn ~USD 3.1 bn share Varies Eliminated Pharmaceuticals Growing USD 302.84 mn Varies Zero (binding) Engineering Goods USD 875.83 mn USD 1.7 bn (electronics alone) 0-5% Zero Textiles & Footwear Significant Large Varies Eliminated IT & Professional Services USD 863 mn (bilateral services) USD 12.52 bn (Oman global) Various barriers 127 sub-sectors opened Source: PIB Press Release, Ministry of Commerce & Industry, Government of India Why This Is the Right Moment to Move There are various forces in play at this moment and an alert MSME operator shouldn’t underestimate any of them. The duty removal is immediate, that’s the first. As of June 1st, the day the agreement entered into force, all concessions with a zero duty rate were to be implemented. There is no phased schedule, no waiting period, no transitional clause for the 99.38% of export lines covered. Exporters who ship now reap rewards now. Second, the NTBs have been addressed head on. Oman will now accept mandatorily, at its ports, Indian certificates from the Export Inspection Council (EIC) eliminating any duplicate testing. Both NPOP Organic and halal certification is recognised in India. This eliminates months of compliance hassles at the border for food processors, agri-exporters and organic product producers. Third, the services and professional mobility provisions open up doors which pure goods exporters do not often reach. Oman has offered 127 services sub-sectors, the most comprehensive offer to India by any GCC country. Oman has now provided legally binding certainty for IT professionals, engineers, doctors, architects and educators. Independent professionals have a time limit of up to 180 days. The Intra-Corporate Transferees are allowed to remain for a period of up to four years. Almost 6000 joint ventures between India and Oman are directly affected. There are various support mechanism provided by the government that can be utilized by the MSME manufacturers for export market. Production Linked Incentive (PLI) offers 4-6% incentive on incremental sales for sectors that are directly