NewKerala.com

India-Oman CEPA: A Strategic Gulf Pact Amid Global Trade Realignment

India is set to sign a major trade deal with Oman, strengthening its economic footprint in the Gulf. This agreement is a big deal for Oman, as it's their first new bilateral pact in almost 20 years. It's part of India's broader strategy to secure beneficial trade deals around the world. The move builds on already strong ties, with trade between the two countries recently surpassing $10 billion.

Key Points: India Oman CEPA to Deepen Economic Ties in Gulf Region

  • The CEPA aims to improve market access and promote investments across key sectors for both nations
  • It is Oman's first new bilateral trade agreement in nearly two decades, highlighting India's strategic importance
  • The pact supports trade diversification and supply chain resilience amid global economic shifts
  • Bilateral trade grew to over $10.6 billion in FY 2024-25, supported by thousands of joint ventures
3 min read

India-Oman CEPA to deepen economic engagement in Gulf Region

India and Oman sign a landmark CEPA to boost trade, investment, and supply chain resilience, marking Oman's first new bilateral trade pact in nearly 20 years.

"The India-Oman CEPA holds special significance as it is Oman's second free trade agreement with an individual country and the first such agreement Oman is entering into in nearly 20 years. - Article"

Muscat, December 18

India is set to sign a Comprehensive Economic Partnership Agreement (CEPA) with Oman, marking an important step in strengthening India's economic engagement with the Gulf region.

The agreement is expected to improve market access, promote investments and enhance cooperation across key sectors.

The India-Oman CEPA holds special significance as it is Oman's second free trade agreement with an individual country and the first such agreement Oman is entering into in nearly 20 years.

The pact reflects the growing importance of India as a strategic trade and investment partner for Oman.

The agreement is expected to support trade diversification and supply chain resilience, helping both countries adapt to global economic realignment.

The proposed agreement comes at a time when India has been actively expanding its network of free trade agreements to support domestic growth and improve global market access for Indian businesses.

In recent years, India has signed multiple FTAs that are already delivering benefits for farmers, traders and exporters.

In 2025, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, which is reducing tariffs on more than 90 per cent of traded goods and is expected to significantly expand bilateral trade between the two countries.

In 2024, India concluded a trade and economic partnership agreement with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland and Liechtenstein. This agreement is supported by strong investment commitments into India, aimed at boosting long-term economic cooperation.

Earlier, in 2022, India signed the Economic Cooperation and Trade Agreement (ECTA) with Australia, which cuts or eliminates tariffs on most traded goods and opens up new opportunities for Indian exports across sectors.

The same year, India also signed a CEPA with the United Arab Emirates (UAE). This agreement reduced tariffs on over 90 per cent of Indian exports, helping boost trade in key sectors such as gems and jewellery, textiles, leather and engineering goods.

In 2021, India entered into its first Africa-focused trade pact with Mauritius, improving market access and positioning Mauritius as a gateway for Indian trade into the African continent.

The upcoming India-Oman CEPA adds to this growing list of trade agreements.

It highlights India's forward-looking trade strategy, which focuses on diversification, resilience and mutually beneficial growth.

India and Oman share strong and growing economic ties. Bilateral trade during FY 2023-2024 stood at USD 8.947 billion, while in FY 2024-25, it increased to USD 10.613 billion. Investment relations between the two countries have also remained robust, supported by a large number of joint ventures.

There are over 6,000 India-Oman joint ventures operating in Oman. The cumulative outward direct investment from India to Oman stands at USD 675 million. Meanwhile, the cumulative FDI equity inflow from Oman to India between April 2000 and March 2025 amounts to USD 610.08 million.

- ANI

Share this article:

Reader Comments

P
Priya S
Excellent news! The UAE CEPA has already shown positive results for my family's textile business. Hoping the Oman agreement will provide similar tariff relief and make our exports more competitive. The government's focused FTA strategy is finally paying off for MSMEs.
R
Rohit P
While expanding trade is good, we must ensure our domestic industries, especially agriculture and small manufacturing, are protected from a flood of imports. The details of the agreement will be key. Hope it's truly mutually beneficial and not just a headline.
S
Sarah B
The investment commitments part is interesting. Over $600 million from Oman to India is significant. If this agreement can channel more Gulf investment into our infrastructure and renewable energy projects, it will be a big win for the 'Make in India' initiative.
V
Vikram M
More than 6,000 joint ventures already! That's a massive Indian diaspora footprint. This CEPA will solidify Oman's position as a gateway for Indian businesses looking at the wider Middle East and East Africa. Smart economic diplomacy.
K
Kavya N
As someone with family working in Oman, this is welcome. Stronger economic ties mean more stability and opportunities for the huge Indian community there. Hopefully, it also makes procedures easier for professionals and students moving between our countries.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50