India and Oman Finalize Comprehensive Economic Partnership Agreement

The Sultanate of Oman and the Republic of India are set to formalize a Comprehensive Economic Partnership Agreement (CEPA) on Thursday, December 18, 2025, marking a significant advancement in their bilateral economic ties. This agreement, which functions as a Free Trade Agreement, was announced by India's Union Minister of Commerce and Industry, Piyush Goyal, during his address at the India-Oman Business Forum in Muscat.

The signing ceremony is scheduled to take place in the presence of Indian Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tariq, signaling a high-level commitment to the partnership. This CEPA is notable as it represents Oman's first free trade pact in nearly two decades, succeeding an agreement established with the United States in January 2006. The accord coincides with the 70th anniversary of diplomatic relations between New Delhi and Muscat, a relationship rooted in centuries-old maritime and trading connections.

Minister Goyal highlighted Oman's strategic geographic position as a crucial gateway for Indian enterprises targeting the Gulf Cooperation Council (GCC) region, as well as markets in Eastern Europe, Central Asia, and Africa. This strategic alignment supports both nations' development frameworks: India's 'Viksit Bharat 2047' vision and Oman's 'Vision 2040'. Oman's Minister of Commerce, Industry and Investment Promotion, Qais Al Yousef, confirmed India as Oman's third-largest trading partner, noting that Indian investments have tripled since 2020 to approximately USD 5 billion. Bilateral trade for the 2024-25 fiscal year reached about USD 10.5 billion.

The CEPA is structured to substantially reduce or eliminate customs duties across a wide range of goods while liberalizing trade in services and promoting investment flows. Key sectors identified for expanded opportunities include textiles, food processing, automobiles, gems and jewellery, agrochemicals, and renewable energy. The framework also delineates four priority pillars for deeper collaboration: energy transition, covering green hydrogen and renewables; infrastructure development, focusing on ports and logistics; food security via cold chains; and the startup ecosystem, targeting deep tech, logistics, and Artificial Intelligence.

Negotiations for the CEPA began in November 2023 and concluded with the final round in January 2025, with the draft receiving approval from India's Union Cabinet and Oman's Majlis A' Shura. The agreement, which mirrors the structure of India's existing free-trade template with the UAE, is expected to be implemented promptly following the signing, as domestic approvals are secured. The high-level visit, which includes Prime Minister Modi's second trip to the Sultanate, will also involve a review of cooperation in defense, security, technology, and culture.