The India–Oman Comprehensive Economic Partnership Agreement (CEPA) is poised to significantly deepen bilateral trade and cargo movement between the two countries. At a time when global supply chains are being reconfigured, such an agreement is truly the need of the hour for both India and Oman.

With zero-duty access granted to nearly 98% of Indian products, CEPA effectively enables the vast majority of Indian goods to enter the Omani market duty-free. This will not only enhance trade competitiveness but also accelerate market access for Indian exporters.

Oman’s strategic geographic position—close to the Strait of Hormuz and situated between Africa, the Red Sea and the wider Middle East—adds immense value to this agreement. Supported by two major seaports at Duqm and Sohar, CEPA is expected to provide a major boost to Indian investors in Oman, particularly those looking to manufacture locally and re-export to the MENA region and global markets.

Indian exports are likely to double within a relatively short period by leveraging Oman as a regional gateway. At the same time, Omani exports to India—beyond petrochemical products—will benefit from more liberal duty access. This is expected to drive a strong increase in Omani exports, especially in minerals, non-oil commodities and finished goods.

From a logistics perspective, the agreement represents a major growth catalyst. Increased trade volumes and cargo movement will directly strengthen the logistics and shipping sectors, while also creating new employment opportunities, particularly for Omani nationals.

With regard to the establishment of direct offices by international shipping lines, some carriers already maintain a presence in Oman. However, sustained interest from additional carriers will depend largely on the country’s ability to generate sufficient export volumes. That said, Oman’s long-term prospects in logistics remain very strong if its strategic advantages are fully utilised.

Located at the eastern edge of the Arabian Peninsula, Oman is uniquely positioned to serve as a natural, reliable and efficient logistics hub for the region. CEPA has the potential to unlock this promise—transforming Oman into a key node in regional and global trade networks.

About the Author: Abdul Rahim Kasim T C is CEO of Badar Shipping Group, with deep expertise in shipping, logistics and cross-border trade.