India, Oman Sign CEPA with Full Tariff Elimination for MedTech Exports

Under the agreement, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports by value.

India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA) that has opened the door to near-universal duty-free access for Indian exports, with medical devices and pharmaceuticals among the key sectors receiving full tariff elimination, reinforcing India’s growing MedTech footprint in the Gulf region.

The CEPA represents a major step in deepening India’s economic engagement with West Asia and positions Oman as a critical gateway for Indian MedTech, digital health solutions, and healthcare services to the Middle East and Africa.

Oman has emerged as an important strategic partner for India, with bilateral trade already exceeding USD 10 billion. The CEPA builds on this base by providing structured market access, regulatory predictability, and investment opportunities across goods and services.

It is also the first bilateral trade agreement Oman has signed since its pact with the United States in 2006, underlining its strategic importance.

Under the agreement, Oman has offered zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports by value.

All major labour-intensive sectors, including pharmaceuticals and medical devices, receive full tariff elimination, with immediate duty removal on 97.96 per cent of tariff lines.

India, in turn, has committed to tariff liberalisation on 77.79 per cent of its total tariff lines, accounting for nearly 95 per cent of imports from Oman by value.

For products considered sensitive to India, market access has largely been structured through tariff-rate quotas, balancing trade expansion with domestic interests.

Oman has also extended commitments across sectors such as computer-related services, professional and business services, research and development, education, and health services.

These provisions are expected to support Indian digital health firms, health IT providers, and MedTech companies seeking to establish or expand operations in the region.

A significant provision allows 100 per cent foreign direct investment by Indian companies in major services sectors in Oman through commercial presence, creating new pathways for Indian healthcare and MedTech enterprises to scale regionally.

The agreement also includes a landmark commitment from Oman on Traditional Medicine across all modes of supply, creating fresh opportunities for India’s AYUSH and wellness ecosystem alongside modern MedTech solutions.

A joint statement following Prime Minister Modi’s meeting with Sultan Haitham bin Tarik noted that both leaders also discussed mechanisms to facilitate bilateral trade in local currencies.

The agreement has been signed by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, H.E. Qais bin Mohammed Al Yousef, under the leadership of Prime Minister Narendra Modi.

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