In a significant move to deepen economic and strategic ties with the Gulf region, India signed a landmark free-trade agreement with the Sultanate of Oman on Thursday. The Comprehensive Economic Partnership Agreement (CEPA) was inked during Prime Minister Narendra Modi's two-day official visit to Muscat, which commenced on Wednesday.
A Strategic Pillar in the Gulf
This pact marks another crucial pillar in New Delhi's expanding trade and strategic engagement with Gulf nations, closely following the successful India-UAE CEPA signed in February 2022. The agreement comprehensively covers goods, services, and investment, with the primary goal of easing tariff and non-tariff barriers. It is strategically designed to fortify India's long-term economic footprint in West Asia.
The official signing ceremony took place at the Sultan of Oman's palace. Union Minister for Commerce and Industry, Piyush Goyal, and Oman's Minister of Commerce, Industry, and Investment Promotion, Qais bin Mohammed Al Yousef, signed the document in the presence of PM Modi and Oman's Sultan, Haitham bin Tarik.
Procedural Journey and Implementation Timeline
The groundwork for this agreement was laid well before the visit. The Union Cabinet of India approved the CEPA on December 12 last year. Similarly, Oman's lower house of Parliament had also cleared the draft agreement, paving the way for the final signing.
Drawing parallels with the India-UAE deal, which was implemented in May 2022 a few months after its signing, government officials indicate that the India-Oman CEPA is also expected to take effect within a few months. This timeline is contingent upon the completion of necessary procedural formalities in both countries.
Expanding India's FTA Portfolio
For the Modi-led National Democratic Alliance (NDA) government, this agreement represents the sixth major free trade pact. It is also notably the first trade agreement finalized during the tenure of Commerce Secretary Rajesh Agarwal. The government's recent FTA trajectory includes:
- Mauritius (February 2021)
- United Arab Emirates (February 2022)
- Australia (April 2022)
- European Free Trade Association (February 2024)
- United Kingdom (July 2025)
This proactive engagement on trade fronts extends beyond signed deals. India is currently in the final stages of negotiations with both the European Union (EU) and the United States on separate trade arrangements, signaling a robust and forward-looking trade policy.
The India-Oman CEPA is more than just a trade deal; it is a strategic instrument to enhance economic integration, create new opportunities for businesses in both nations, and solidify a key partnership in a geopolitically vital region.
