India and Oman on Thursday signed a free trade agreement as Prime Minister Narendra Modi held wide-ranging talks with Sultan Haitham bin Tarik, seeking to add greater depth and momentum to the bilateral Strategic Partnership.
The Comprehensive Economic Partnership Agreement (CEPA) was signed following the talks at Al Baraka Palace, where Sultan Haitham formally welcomed Modi, who arrived in Muscat on Wednesday on the final leg of his three-nation tour.
The agreement was inked by Union Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef.
The two leaders noted that the conclusion of the CEPA coincides with the 70th anniversary of the establishment of diplomatic relations between India and Oman, describing it as a milestone in the evolving partnership.
Ministry of External Affairs spokesperson Randhir Jaiswal said the leaders explored ways to further strengthen cooperation across multiple sectors and deepen strategic ties.
According to Jaiswal, the discussions covered a broad spectrum of areas, including defence and security, trade and investment, energy, agriculture, technology, culture and people-to-people exchanges, besides issues of regional and global importance.
Both sides welcomed the CEPA as a key step that would significantly strengthen economic engagement and reinforce the strategic partnership.
The agreement is expected to improve market access, boost investments and enhance cooperation across critical sectors.
It is also aimed at supporting trade diversification and strengthening supply chain resilience at a time of global economic realignment.
Prime Minister Modi said the CEPA would infuse new confidence and energy into India–Oman relations.
His visit, undertaken at the invitation of Sultan Haitham, is his second to the Gulf nation and holds special significance as it marks seven decades of diplomatic ties. Modi earlier visited Ethiopia and Jordan as part of the same tour.
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Oman is India’s third-largest export destination among Gulf Cooperation Council countries. India already has a similar trade pact with another GCC member, the United Arab Emirates, which came into force in May 2022.
Bilateral trade between India and Oman stood at about USD 10.5 billion in 2024–25, with India’s exports valued at USD 4 billion and imports at USD 6.54 billion.
India’s major imports from Oman include petroleum products and urea, which together account for over 70 per cent of inbound shipments, along with polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.
India’s exports to Oman include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships and floating structures, electrical machinery, boilers, tea, coffee, spices, apparel and a range of food items.
