Cabinet nod brings India-Oman CEPA within reach ahead of PM Modi’s Muscat visit
New Delhi, December 13. India has moved closer to clinching a landmark trade agreement with Oman after the Union Cabinet approved the proposed India–Oman Comprehensive Economic Partnership Agreement (CEPA), clearing the way for its formal conclusion during Prime Minister Narendra Modi’s visit to Muscat next week.
Media reports cited senior government sources as saying that the agreement is expected to be signed during Modi’s visit to Oman on December 17-18.
Briefing the media, Secretary (CPV & OIA) Arun Kumar Chatterjee in the Ministry of External Affairs, said both sides were “very optimistic” about finalising the pact during the Prime Minister’s trip.
“Teams on both sides have worked intensively for an early conclusion. Several documents are at advanced stages of approval, and we are confident that signing the CEPA during this visit will significantly deepen economic ties and open a new chapter in India–Oman trade and commercial relations,” Chatterjee said.
Negotiations for the CEPA began in November 2023 and were concluded earlier this year. The agreement aims to reduce or eliminate customs duties on a broad range of goods, liberalise services, and promote greater investment flows.
Officials said the pact would help secure long-term market access, diversify supply chains, and strengthen India’s economic presence in the Gulf and the wider Indian Ocean Region, where Oman is regarded as a key strategic partner.
The proposed trade pact forms part of the backdrop to the Prime Minister’s three-nation tour of Jordan, Ethiopia and Oman from December 15 to 18, described by officials as a calibrated diplomatic outreach spanning West Asia and Africa.
Modi’s visit to Oman will coincide with the 70th anniversary of diplomatic relations between the two countries and follows Sultan Haitham bin Tarik’s State visit to India in 2023. During the visit, the two sides are expected to review cooperation across defence, maritime security, energy, technology, investment and food security, while also exchanging views on regional developments in the Gulf and the Indian Ocean Region.
Economic ties between India and Oman have expanded steadily in recent years. Bilateral trade stood at $10.61 billion in FY 2024-25, with India emerging as Oman’s fourth-largest source of non-oil imports and its third-largest destination for non-oil exports. More than 6,000 India-Oman joint ventures contribute an estimated $7.5 billion to Oman’s economy.
Investment linkages have also deepened, with the Oman India Joint Investment Fund deploying over $320 million across sectors in India, and a third tranche currently underway. Several major Indian companies have established a presence in Oman in areas ranging from green hydrogen and steel to manufacturing, IT, logistics and construction.
The partnership is further underpinned by strong people-to-people ties. Around 6.8 lakh Indians live in Oman, most of them on work visas, while 22 Indian schools in the country educate more than 48,000 students.
Officials were quoted as saying that the proposed CEPA is expected to act as a force multiplier for an already strong bilateral relationship, positioning India and Oman to expand both commercial and strategic cooperation at a time of heightened regional and economic significance.
