The India-Oman Comprehensive Economic Partnership Agreement is a landmark agreement that is expected to significantly boost India’s services trade with the Gulf region. The Agreement offers broader and deeper market access commitments from Oman across all key sectors and modes of supply. Sectors of interest to India, such as computer-related services, business services, professional services, education, healthcare, R&D, and audio-visual services, have received best treatment, ensuring enhanced commercial opportunities for Indian service providers.
“SEPC welcomes the India–Oman CEPA as it represents a strategic opportunity for India’s services sector to expand its footprint in a high-potential market,” said Abhay Sinha, Director General, Services Export Promotion Council set up by the Ministry of Commerce and Industry. “With deeper sectoral commitments and improved predictability in market access and professional mobility, Indian service providers can build long-term presence and scale service delivery with confidence.”
In 2024, India’s services exports to Oman stood at USD 665 million, while imports were USD 198 million. Oman’s global services imports exceeded USD 12.52 billion, offering a large untapped potential for Indian service providers.
A key distinguishing feature of the India-Oman CEPA is the significant advancement in mobility commitments. Oman has, for the first time in any FTA, agreed to relax the limitation criteria for Intra-Corporate Transferees from 20% to 50%. This means Indian companies can now transfer a larger share of managerial and specialist personnel to their Oman operations. Further, Oman has committed to the category of professionals, covering 15 sub-sectors including accounting, engineering, medical and dental, IT, construction, and education services. These mobility gains are crucial for the approximately 6000 India-Oman joint ventures already present in Oman, particularly those in the services sector.
The CEPA also introduces a dedicated Annex on Health-related Services and Traditional Medicine, aimed at promoting Indian systems of medicine such as AYUSH, fostering medical value travel, and encouraging institutional cooperation in the field of traditional medicine. This Annex is a first-of-its-kind initiative for India in any CEPA/FTA.
Currently, Indian workers in Oman do not face dual social security contributions. However, to address any future challenges, the CEPA includes a specific commitment to negotiate a bilateral Social Security Agreement. Once concluded, this will ensure continuity of social security benefits on a reciprocal basis and prevent dual contributions. This provision will benefit approximately 5.2 Lakh Indian workers and more than 6000 India-Oman joint ventures operating in Oman.