India and Oman will sign a Comprehensive Economic Partnership Agreement (CEPA) on Thursday (Dec 18), marking the Gulf nation’s first free trade agreement in nearly two decades, Union commerce and industry minister Piyush Goyal said on Wednesday.
Addressing the India–Oman Business Forum in Muscat, Goyal said the agreement had been in the making for almost two years and would be executed in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tariq. “Tomorrow will be an instrumental day when, before our two leaders, Qais (Oman's minister for trade) and I will have the privilege of executing the first free trade agreement Oman is going to sign with a country in nearly 20 long years,” he said, noting that Oman’s last trade agreement was signed with the United States in 2006.
Prime Minister Narendra Modi arrived in Muscat, Oman on Wednesday where he was received at the airport by Head of State of the Sultanate of Oman, Sultan Haitham bin Tarik.
Goyal said Prime Minister Narendra Modi’s visit to Oman would also mark 70 years of bilateral relations between the two countries. He described Oman as a strategic gateway to the Gulf Cooperation Council (GCC) region as well as Eastern Europe, Central Asia and Africa, adding that the potential for economic engagement was significant.
According to a press release issued by the Ministry of Commerce, India has emerged as Oman’s third-largest trading partner, while Indian investments in the Sultanate have more than tripled since 2020, crossing $5 billion. These investments span sectors such as green steel, green ammonia, aluminium manufacturing, renewable energy and logistics.
The commerce minister said the two sides see wide-ranging collaboration opportunities across manufacturing and services, including textiles, footwear, automobiles and auto components, gems and jewellery, agrochemicals and renewable energy, along with professional services, business processes, research and development, tourism, healthcare and education.
Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef said the CEPA would strengthen trade and investment flows and support Oman’s efforts to position itself as a regional hub. He said India’s growing investment presence reflects confidence in Oman as a long-term economic partner.
Both ministers outlined four broad areas for future cooperation: energy transition, including renewable energy, battery storage and green hydrogen; infrastructure such as multimodal logistics, ports and warehouses; food security through cold storage and food parks aimed at serving the wider region; and deeper engagement between the startup ecosystems of the two countries, particularly in deep tech, logistics, software and artificial intelligence.
The CEPA is expected to provide a framework for expanding trade, investment and sectoral cooperation as India seeks to deepen its economic presence in the Gulf and Oman looks to leverage its geographic and logistical advantages.
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