The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on Monday, boosting trade opportunities across sectors including textiles, marine products, engineering goods, and agriculture.
Oman has indicated it is willing to supply additional fertilisers and petrochemicals to India if needed, helping strengthen supply security amid global uncertainties.
India has entered the Kharif season with fertiliser stocks of nearly 200 LMT, equivalent to more than 52% of projected seasonal demand, reducing the risk of shortages.
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into effect on Monday. The bilateral trade pact is expected to benefit Indian exporters of textiles, leather, plastics, marine products, automobiles, sports goods, and agricultural products, Union Commerce and Industry Minister Piyush Goyal said.
On the first day of implementation, India exported ten consignments comprising gems and jewellery, marine products, and engineering goods to Oman.
1 May 2026
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"Since we foresee a large number of Indian investments being made in Oman, where Indian materials can also be exported, further processed, and serve different markets, we have agreed with the Omani side that for investments made by Indian companies, Indian workers will be given preferential consideration, in addition to the requirements for Omani nationals. Beyond the mandated local employment requirements, Indian workers will be given preference," Goyal said.
Oman to Help Ease Fertiliser Supply Concerns
Apart from expanding trade opportunities, the agreement could also strengthen India's fertiliser and petrochemical supply security at a time when the country remains vulnerable to disruptions in global energy markets amid tensions in West Asia.
According to foreign trade adviser Pankaj Khimji, Oman is willing to supply additional fertilisers and petrochemicals to India if required.
India has been grappling with supply-chain disruptions and elevated energy costs, which have put pressure on fertiliser availability.
Several manufacturing units have either scaled back operations or faced operational challenges due to rising input costs. India imports nearly 50% of its LNG requirements, while West Asia accounts for around 20-30% of the country's urea imports.
Khimji said that if New Delhi requests additional supplies, Oman may consider diverting part of its share from the Oman India Fertiliser Company (OMIFCO), a joint venture involving IFFCO, KRIBHCO, and the Oman Investment Authority, according to a Moneycontrol report.
Following disruptions linked to the Iran crisis, India has accelerated efforts to diversify fertiliser sourcing. The country now procures fertilisers from a broader range of suppliers, including Russia, Morocco, Australia, Indonesia, Malaysia, Jordan, Canada, Algeria, Egypt, and Togo.
Fertiliser Availability Ahead of Kharif Season
India is preparing for the Kharif sowing season amid concerns that El Niño-related weather conditions could affect monsoon rainfall.
The Department of Agriculture and Farmers Welfare has revised the fertiliser requirement for the season to 383.9 lakh metric tonnes (LMT).
As of June 1, fertiliser stocks stood at 199.86 LMT—equivalent to more than 52% of the seasonal requirement—indicating strong preparedness and reducing the risk of shortages during the peak demand period.
Additional Secretary in the Department of Fertilisers, Aparna Sharma, said India has secured nearly 25 LMT of urea, 15 LMT of DAP, and 10 LMT of NPK fertilisers, including ammonium sulphate, from sources that do not rely on routes passing through the Strait of Hormuz. These shipments are expected to arrive in India during June and July.https://www.outlookbusiness.com/news/preferential-certificate-of-origin-for-exports-to-oman-under-cepa-to-be-issued-from-june-1
