India, Oman Sign CEPA To Deepen Trade; PM Modi Calls It 'Historic Step'

Last Updated:December 22, 2025, 12:10 IST

The agreement was signed by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef.

Prime Minister Narendra Modi said will energise our ties in the 21st century.

India and Oman on Thursday took a major step towards strengthening their economic partnership with the signing of a Comprehensive Economic Partnership Agreement (CEPA), marking a new phase in bilateral ties.

Prime Minister Narendra Modi described the pact as a “historic step forward" that will energise India–Oman relations for decades and create fresh opportunities for trade, investment and youth from both countries.

“Today, we are taking a historic step forward in India-Oman relations, whose positive impact will be felt for decades to come. The Comprehensive Economic Partnership Agreement (CEPA) will energise our ties in the 21st century. It will give new momentum to trade, investment and open new opportunities across different sectors. The youth of both nations will greatly benefit," wrote PM Modi on X.

The agreement was signed by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef. It reflects the shared intent of both nations to deepen economic integration and expand cooperation across goods, services and investment.

Oman is a key strategic partner for India in the Gulf and serves as an important gateway to the Middle East and Africa. Around seven lakh Indians live in Oman, including merchant families with roots going back over two centuries.

Indian businesses have a strong footprint in the country, with more than 6,000 establishments operating across sectors. Bilateral trade currently stands at over USD 10 billion, supported by annual remittances of nearly USD 2 billion.

The India–Oman CEPA is the second free trade agreement signed by India in the past six months, following the pact with the United Kingdom. It forms part of India’s broader strategy to engage with developed economies while protecting labour-intensive domestic sectors.

Under the agreement, Oman has offered zero-duty access on over 98 per cent of its tariff lines, covering more than 99 per cent of India’s exports. Key sectors such as textiles, gems and jewellery, leather, engineering goods, pharmaceuticals, medical devices and automobiles will benefit from full tariff elimination, most of it with immediate effect.

India, in return, will liberalise tariffs on nearly 78 per cent of its tariff lines, covering close to 95 per cent of imports from Oman by value. Sensitive products, particularly in agriculture and certain labour-intensive sectors, have been kept out of the agreement to protect domestic interests.

The services sector is another major focus of the CEPA. Oman has made wide-ranging commitments in areas such as IT services, professional and business services, education, health, research and audio-visual services. The agreement also improves mobility for Indian professionals, including higher quotas for intra-corporate transferees and longer stay periods for contractual service suppliers.

A notable feature is Oman’s commitment on traditional medicine across all modes of supply, opening new doors for India’s AYUSH and wellness sectors. The pact also allows 100 per cent foreign direct investment by Indian companies in several services sectors in Oman.

Piyush Goyal said, “The India-Oman CEPA strengthens the historical strong ties of India with Oman and signifies an ambitious and balanced economic framework that significantly enhances opportunities for Indian exporters and professionals…"

The agreement is expected to boost trade, create jobs, strengthen supply chains and deepen long-term economic engagement between the two countries.

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