India and Oman have signed a Comprehensive Economic Partnership Agreement that provides duty-free access for selected Indian fruit and vegetable products entering the Omani market. The agreement was signed in Muscat and applies to a range of agricultural and processed food items, with the scope here limited to fruit and vegetables.
Under the CEPA, Indian exports such as bananas, potatoes, and onions will now enter Oman without import duties. These products previously faced tariff rates ranging from 5 to 100 per cent. Officials said the removal of duties places Indian produce on a comparable footing with supplies from other countries that already benefit from trade agreements with Oman.
Oman is a net importer of agricultural produce, with total agricultural imports rising from US$4.51 billion in 2020 to US$5.97 billion in 2024. In 2024, India held a 10.24 per cent share of Omani agricultural imports, ranking as the second-largest supplier. Indian agricultural exports to Oman increased from US$364.67 million to US$556.34 million over the same period, reflecting a compound annual growth rate of 11.14 per cent.
Within the fruit and vegetable segment, bananas, potatoes, and onions are among the main Indian products shipped to Oman. The removal of duties is expected to improve price positioning for these products compared with competing origins supplying the Gulf region.
The agreement also includes provisions allowing India to import up to 2,000 tons of dates from Oman each year at zero duty. Dates are a key agricultural product for Oman and are widely used in fresh consumption and processing.
Officials noted that duty concessions under the CEPA are designed to align Indian exports with those from countries such as the United States, Singapore, and members of the European Free Trade Association, which includes Switzerland, Norway, Iceland, and Liechtenstein. India already maintains a separate trade agreement with EFTA.
Oman's agricultural import demand continues to be driven by limited domestic production capacity and reliance on overseas suppliers for staple fruit and vegetables. The CEPA framework is expected to shape future trade flows by reducing tariff barriers and formalising market access conditions between the two countries.
The agreement forms part of India's broader trade strategy in the Gulf region, where proximity, established shipping routes, and consistent demand support ongoing growth in fruit and vegetable exports.
Source: Mathrubhumi
