The Comprehensive Economic Partnership Agreement (CEPA) between India and Oman comes into effect today, Monday (June 1, 2026). This agreement was signed during Prime Minister Narendra Modi’s visit to Muscat in December last year. With the implementation of this trade deal, Indian labor-intensive products will now gain zero-duty access to the Omani market, which is expected to boost Indian exports.
Union Commerce and Industry Minister Piyush Goyal announced the entry into force of the CEPA between the two countries on Monday (June 1, 2026) in a post on the social media platform X. He stated that this agreement would prove to be a milestone in New Delhi’s mission to open new global avenues for prosperity for Indian students, artisans, women, farmers, fishermen, and MSMEs. He stated that this would provide access to new markets, boost exports, attract investment, and increase employment opportunities.
The CEPA between India and Oman comes at a time when the escalating conflict and tensions between the United States and Iran have significantly impacted global maritime trade through the Strait of Hormuz. This strategic sea route handles approximately 20 percent of the world’s total daily oil consumption and approximately 25 percent of global oil trade by sea. Consequently, it is considered the world’s most important energy route.
Oman’s greatest strategic advantage lies in its geographical location. Iran’s increasing pressure on the Strait of Hormuz threatens to disrupt India’s crude oil and gas supplies from Saudi Arabia, Qatar, and the United Arab Emirates (UAE). However, unlike most Gulf countries, Oman has a large coastline outside the Strait of Hormuz, in the Arabian Sea and Gulf of Oman.
Regarding this agreement, Ajay Srivastava, founder of the think tank Global Trade Research Initiative (GTRI), said that the major ports of Salalah and Duqm can continue to operate smoothly despite any problems in the Strait of Hormuz. This is why Oman could emerge as a reliable trade and energy gateway for India even during periods of conflict or instability.