India and Oman on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA), marking a major milestone in bilateral ties as Prime Minister Narendra Modi held talks with Sultan Haitham bin Tarik in Muscat.
The agreement was inked during Modi’s two day visit to Oman, the final leg of his three nation tour, at the invitation of the Sultan.
The Prime Minister was earlier welcomed at Al Baraka Palace, where the two leaders reviewed the full spectrum of the India Oman Strategic Partnership.
External Affairs Ministry spokesperson Randhir Jaiswal said the leaders exchanged views on defence and security, trade and investment, energy, agriculture, technology, culture and people to people ties, besides regional and global issues.
They also noted that 70 years of diplomatic relations marked a landmark in bilateral engagement.
The CEPA, signed by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, is expected to significantly enhance market access, promote investments and strengthen cooperation across key sectors.
Under the pact, 98 per cent of Indian exports, including textiles, agricultural and leather goods, will get duty free access to the Omani market.
Calling the pact a new chapter in ties, Jaiswal said it would boost trade, catalyse economic diversification, strengthen supply chains, enhance growth and generate employment.
“For people, CEPA means more jobs, better market access for businesses and greater economic opportunities on both sides,” he said.
Addressing the India Oman Business Forum, Modi said the agreement would infuse new confidence and energy into bilateral trade and investment ties.
He recalled centuries old maritime links from Mandvi to Muscat and said 70 years of diplomatic relations reflected trust built over generations.
Describing CEPA as a blueprint for shared growth, the Prime Minister invited Omani businesses to explore opportunities beyond oil and gas in green energy, solar parks, energy storage, agri tech, fintech, artificial intelligence and cyber security.
He also proposed setting up an India Oman Agri Innovation Hub and an Innovation Bridge.
Modi said India was on track to become the world’s third largest economy, driven by reforms, policy predictability and investor confidence.
He highlighted India’s recent growth of over eight per cent despite global uncertainty as evidence of economic resilience.
India Oman bilateral trade stood at about USD 10.5 billion in 2024 25, with Indian exports at USD 4 billion and imports at USD 6.54 billion.
Oman is India’s third largest export destination among Gulf Cooperation Council countries. India already has a similar trade pact with the UAE.
During the visit, Modi was conferred the First Class of the Order of Oman, the country’s national honour, the 29th international honour bestowed on him.
This is Modi’s second visit to Oman and comes at a time when India has expanded its network of free trade agreements as part of a strategy focused on diversification, resilience and mutually beneficial growth.
