India, Oman sign CEPA, PM calls it historic

India and Oman on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA). The agreement was signed by India’s Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef. It would lower trade barriers, enhance market access and provide a stable and predictable framework for businesses operating in both economies, officials said.

Bilateral trade between India and Oman has recently crossed the $ 10 billion mark, and the CEPA is expected to significantly expand trade volumes, boost investment flows, generate employment and unlock opportunities across multiple sectors. For Oman, the pact is particularly notable as it is only the second free trade agreement it has signed with an individual country and the first in nearly 20 years.

Describing the agreement as a historic breakthrough, Prime Minister Narendra Modi said the CEPA would have a transformative impact on India-Oman relations. The PM arrived in Oman on Wednesday on the final leg of his three-nation tour, where he was received by Sultan Haitham bin Tarik at the Al Baraka Palace. The PM was conferred the prestigious Order of Oman (First Class) by His Majesty Sultan Haitham bin Tarik in recognition of his exceptional contribution to strengthening India-Oman relations and his visionary leadership

Beyond economic cooperation, the two leaders reviewed defence and security ties, with particular emphasis on maritime cooperation in the Indian Ocean region. They reaffirmed their shared commitment to regional peace, stability and the safety of critical sea lanes.

The leaders welcomed the convergence between Oman Vision 2040 and India’s long-term development goal of becoming a developed nation by 2047, noting that both frameworks emphasise sustainable and inclusive growth. Several memoranda of understanding were signed during the visit, covering maritime heritage and museums, agriculture and allied sectors, and higher education.

The visit holds special significance as India and Oman mark 70 years of diplomatic relations this year. PM Modi described the milestone as a reflection of the deep historical, maritime and cultural links that bind the two nations.

Oman is India’s third-largest export destination among Gulf Cooperation Council countries. India-Oman trade stood at around $ 10.5 billion in 2024-25, with petroleum products and urea accounting for the bulk of India’s imports, while exports include fuels, chemicals, food products, machinery, textiles and steel.

Modi’s visit to Oman, his second to the Gulf nation, comes at the invitation of Sultan Haitham. Earlier, he visited Ethiopia and Jordan, underlining India’s expanding diplomatic and economic engagement across West Asia and Africa.

With the signing of the CEPA, India and Oman have signalled a clear intent to anchor their partnership in deeper economic integration while broadening cooperation in strategic, cultural and people-centric domains.