India to Cut Import Duties on Key Omani Goods Under New Trade Pact

New Delhi, Dec 20 : India will eliminate import duties on a range of key goods from Oman, including crude petroleum oil, liquefied natural gas (LNG), urea, naphtha and motor gasoline, under the Comprehensive Economic Partnership Agreement (CEPA) signed between the two countries on December 18.

According to official details, duties on several products such as lifeboats (other than rowing boats), anhydrous ammonia, sulphur, liquefied butanes, toluene, iron ore pellets and coal tar distillation products will be removed from the very day the agreement comes into force. The CEPA is expected to be implemented within the next three months.

Tariffs on another set of commodities will be eliminated in a phased manner, including petroleum bitumen, natural gypsum, aluminium ingots, limestone, automotive diesel fuel, quicklime, dolomite, vacuum gas oil, high-speed diesel, cement clinkers, unwrought aluminium, base oil, synthetic perfumery compounds and select aluminium articles.

Under the pact, India has offered tariff liberalisation on 77.79 per cent of its total tariff lines, covering 94.81 per cent of imports from Oman by value. For items sensitive to India but of export interest to Oman, concessions will largely be extended through tariff-rate quota (TRQ) mechanisms.

India imported goods worth USD 6.6 billion from Oman in FY25, led by crude oil, LNG and fertilisers, each valued at around USD 1.1 billion. Other major imports included methyl alcohol (USD 435 million), anhydrous ammonia (USD 382.4 million) and petroleum coke (USD 315 million).

The agreement is expected to deepen bilateral trade ties and enhance energy and industrial supply chains between India and Oman.