Commerce Minister Piyush Goyal said on Wednesday that India and Oman will sign the comprehensive economic partnership agreement (CEPA) on Thursday in the presence of Indian Prime Minister Narendra Modi and Sultan Haitham bin Tarik of Oman.
“The rich culture that we share between Oman and India has been instrumental in bringing us to this very very memorable and fruitful day tomorrow, when before our two leaders, when we will have the privilege of executing the first Free Trade Agreement, Oman is going to sign with a country after nearly 20 long years,” Piyush Goyal said on Wednesday during his address at India-Oman Business Forum, Muscat.
Formal talks for FTA began in November 2023, and negotiations concluded earlier this year. Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) countries.
India-Oman FTA is likely to open significant opportunities across sectors including textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy and auto components.
The agreement aims to substantially reduce or eliminate tariffs on a wide range of goods, liberalise services trade and facilitate investment flows. Bilateral trade between the two countries stood at about $10.6 billion in 2024-25 with a trade deficit of $2.48 billion.
Currently, over 80% of Indian goods enter Oman at an average tariff of around 5%, but duties range widely from zero to as high as 100% on select products such as certain meats, alcohol and tobacco. “Tariff elimination under the CEPA is expected to improve competitiveness for Indian industrial exports, though sustained growth will depend on quality upgrades and product differentiation in Oman’s relatively small market,” said Ajay Srivastava, founder, Global Trade Research Initiative (GTRI).
Meanwhile, Prime Minister Narendra Modi landed in Muscat, Oman on Wednesday. In a social media post, Modi said that his visit offers an opportunity to explore new avenues of collaboration and add fresh momentum to our partnership.