India signed a free-trade agreement (FTA) with Oman on Thursday, adding another pillar to New Delhi’s expanding trade and strategic engagement with the Gulf, following a similar deal with the United Arab Emirates.
The Comprehensive Economic Partnership Agreement (CEPA), which covers goods, services and investment, was signed during Prime Minister Narendra Modi’s two-day visit to Muscat, which began on Wednesday, at the palace of Oman’s Sultan Haitham bin Tariq by Union commerce and industry minister Piyush Goyal and his counterpart Qais Al Yousef.
The pact aims to ease tariff and regulatory barriers while strengthening India’s long-term economic presence in West Asia. From the Indian side, the CEPA was approved by the Union cabinet on 12 December, while Oman’s lower house of Parliament has also cleared the draft agreement.
Addressing business leaders at the India-Oman Business Summit, Modi said while seasons may change, the friendship between India and Oman continues to grow stronger with time.
Highlighting 70 years of diplomatic relations, he said the partnership is built on trust and shared heritage and is now looking ahead to a more prosperous future.
“Our bilateral trade has crossed $10 billion, but that is just the beginning. There is a long road ahead and many achievements still to come. Our focus must now shift to building a more diversified and resilient economic partnership—across trade, investment, tourism, and cooperation in innovation and technology,” Goyal said while addressing the summit.
He added the CEPA will act as an enabler of a more ambitious future by offering duty-free access, addressing trade barriers and simplifying rules.
As seen in the case of the India-UAE CEPA, which was signed in February 2022 and implemented in May that year, the India-Oman agreement is also expected to take effect a few months after signing once procedural formalities are completed, a government official said, on the condition of anonymity.
For the National Democratic Alliance (NDA) government led by Modi, it will mark the sixth such pact, while it is the first trade agreement signed during the tenure of commerce secretary Rajesh Agarwal.
The trade agreement with Mauritius was signed in February 2021, followed by the UAE in February 2022, Australia in April 2022, European Free Trade Association in February 2024, and the UK in July 2025.
India is also in the final leg of negotiations with the European Union (EU) and the US on separate trade arrangements.