UPSC Prelims Practice Questions — India–Oman Comprehensive Economic Partnership Agreement (CEPA) Comes into Force on 1 June 2026

Q1. With reference to the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force in 2026, consider the following statements: 1. It is India's second CEPA with a member state of the Gulf Cooperation Council (GCC), the first being with the United Arab Emirates. 2. Under the Agreement, Oman has offered duty-free market access on 98.08% of its tariff lines, covering 99.38% of India's export value to Oman. 3. It contains Oman's first-ever country commitment on Traditional Medicine across all four modes of supply under the services chapter. Which of the statements given above are correct?

1. It is India's second CEPA with a member state of the Gulf Cooperation Council (GCC), the first being with the United Arab Emirates.
2. Under the Agreement, Oman has offered duty-free market access on 98.08% of its tariff lines, covering 99.38% of India's export value to Oman.
3. It contains Oman's first-ever country commitment on Traditional Medicine across all four modes of supply under the services chapter.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q2. With reference to the India-Oman Comprehensive Economic Partnership Agreement (CEPA), consider the following statements: 1. Oman has offered duty-free market access on 98.08% of its tariff lines. 2. All 945 textile and apparel tariff lines receive immediate duty-free entry into Oman. 3. The Agreement entered into force on 1 January 2026. 4. It is India's second CEPA with a member state of the Gulf Cooperation Council. Which of the statements given above is/are NOT correct?

1. Oman has offered duty-free market access on 98.08% of its tariff lines.
2. All 945 textile and apparel tariff lines receive immediate duty-free entry into Oman.
3. The Agreement entered into force on 1 January 2026.
4. It is India's second CEPA with a member state of the Gulf Cooperation Council.

• A. 1 and 3
• B. 2 and 4
• C. 1, 2 and 4
• D. 3 only

Q3. With reference to India's recent bilateral trade agreements, consider the following pairs of (Agreement — Year of signing): 1. India–UAE CEPA — 2022 2. India–Australia ECTA — 2022 3. India–EFTA TEPA — 2024 4. India–Oman CEPA — 2024 Which of the pairs given above is/are NOT correctly matched?

1. India–UAE CEPA — 2022
2. India–Australia ECTA — 2022
3. India–EFTA TEPA — 2024
4. India–Oman CEPA — 2024

• A. 1 and 3
• B. 2 and 4
• C. 4 only
• D. 3 and 4

Q4. Among the following bilateral trade agreements signed by India since 2022, which one was the FIRST to enter into force?

• A. India–Oman Comprehensive Economic Partnership Agreement (CEPA)
• B. India–EFTA Trade and Economic Partnership Agreement (TEPA)
• C. India–Australia Economic Cooperation and Trade Agreement (ECTA)
• D. India–UAE Comprehensive Economic Partnership Agreement (CEPA)

Q5. The Musandam exclave, which lies on the southern shore of the Strait of Hormuz and is separated from the rest of its parent country exclusively by the territory of another sovereign state, is administered as a Governorate of which one of the following countries?

• A. Sultanate of Oman
• B. United Arab Emirates
• C. Kingdom of Saudi Arabia
• D. Republic of Yemen

Q6. Which one of the following is the only sea passage connecting the Persian Gulf to the open ocean, with its southern shore lying along the Omani Musandam Peninsula and serving as a strategic chokepoint adjacent to Oman?

• A. Strait of Hormuz
• B. Bab-el-Mandeb
• C. Strait of Malacca
• D. Suez Canal

Q7. Which one of the following is India's largest trading partner within the Gulf Cooperation Council (GCC) bloc in FY 2024-25?

• A. Saudi Arabia
• B. United Arab Emirates
• C. Qatar
• D. Oman

Q8. How many sovereign states are members of the Gulf Cooperation Council (GCC)?

• A. Five
• B. Six
• C. Seven
• D. Eight

Q9. Which one of the following is the nodal implementing department/ministry on the Indian side for the India–Oman Comprehensive Economic Partnership Agreement (CEPA), 2026?

• A. Department of Commerce, Ministry of Commerce and Industry
• B. Ministry of External Affairs
• C. Department of Revenue, Ministry of Finance
• D. Ministry of Textiles

Q10. In the context of the India–Oman trade pact that entered into force on 1 June 2026, which one of the following most accurately describes a 'Comprehensive Economic Partnership Agreement (CEPA)'?

• A. A trade arrangement limited to reciprocal tariff concessions on a positive list of agreed goods, without binding commitments on services or investment
• B. A wide-ranging treaty between the partner countries covering trade in goods and services, investment, rules of origin and customs cooperation
• C. A bilateral investment treaty that exclusively governs cross-border investment protection and investor–state dispute settlement
• D. A free-trade pact that eliminates duties on substantially all goods between the partners but explicitly excludes services and investment chapters

Q11. Which one of the following is the nodal Government of India authority responsible for negotiating and implementing the India–Oman Comprehensive Economic Partnership Agreement (CEPA)?

• A. Department of Commerce, Ministry of Commerce and Industry
• B. Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
• C. Department of Revenue, Ministry of Finance
• D. Department of Economic Affairs, Ministry of Finance

Q12. In the context of international trade agreements such as the India–Oman CEPA, the term 'Rules of Origin' refers to which one of the following?

• A. The criteria used to determine the national source of a product in order to decide its eligibility for preferential tariff treatment
• B. The set of tariff rates that a country must apply equally to all its WTO trading partners without discrimination
• C. The procedural rules governing the dispute settlement mechanism between the two signatory parties of a trade agreement
• D. The rules that exclusively prohibit the import of goods produced using child labour or other unfair labour practices

Q13. Consider the following statements regarding the India–Oman Comprehensive Economic Partnership Agreement (CEPA) that entered into force on 1 June 2026. Which of the statements given above is/are NOT correct?

1. Oman has offered zero-duty access on more than 98% of its tariff lines, covering over 99% of India's export value to Oman.
2. All 945 textile and apparel tariff lines obtain immediate duty-free entry into the Omani market under the Agreement.
3. It is the first bilateral free trade agreement signed by Oman since its FTA with the United States in 2006.
4. Prior to the CEPA, Indian textile and apparel exports to Oman attracted a Most Favoured Nation (MFN) duty of about 15 per cent, which has now been eliminated.

• A. 1 only
• B. 2 and 3 only
• C. 4 only
• D. 3 and 4 only

Q14. With reference to the market access for Indian textiles and apparel under the India–Oman CEPA in comparison with the earlier Most Favoured Nation (MFN) regime, consider the following statements: 1. Under the MFN regime, only about 11 per cent of tariff lines and about 15 per cent of India's export value entered Oman at zero duty, whereas under the CEPA Oman offers zero-duty access on more than 98 per cent of its tariff lines. 2. Whereas Indian textile and apparel shipments to Oman earlier faced an MFN duty of around 5 per cent, all 945 textile and apparel tariff lines now receive immediate duty-free entry under the CEPA. 3. Unlike the India–UAE CEPA of 2022, the India–Oman CEPA is restricted to trade in goods and contains no commitments by Oman on services. Which of the statements given above is/are correct?

1. Under the MFN regime, only about 11 per cent of tariff lines and about 15 per cent of India's export value entered Oman at zero duty, whereas under the CEPA Oman offers zero-duty access on more than 98 per cent of its tariff lines.
2. Whereas Indian textile and apparel shipments to Oman earlier faced an MFN duty of around 5 per cent, all 945 textile and apparel tariff lines now receive immediate duty-free entry under the CEPA.
3. Unlike the India–UAE CEPA of 2022, the India–Oman CEPA is restricted to trade in goods and contains no commitments by Oman on services.

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3