India, Oman ink free trade agreement as PM Modi holds talks with Sultan Haitham

Muscat: India and Oman on Thursday inked a free trade agreement, as Prime Minister Narendra Modi held talks with Sultan Haitham bin Tarik and explored ways to further add greater depth to the bilateral Strategic Partnership.

Modi, who arrived in Oman on Wednesday on the last leg of his three-nation tour, was welcomed by Sultan Haitham at Al Baraka Palace in Muscat before the bilateral meeting.

During the meeting, both leaders noted that the completion of 70 years of diplomatic relations between India and Oman is a landmark in the bilateral partnership, Ministry of External Affairs Spokesperson Randhir Jaiswal said.

"They explored ways to further add greater depth to the India-Oman Strategic Partnership," he said.

The leaders welcomed the signing of the Comprehensive Economic Partnership Agreement (CEPA) as a milestone in bilateral ties, affirming that it would significantly strengthen the India-Oman strategic partnership.

"Both exchanged views on a broad range of topics, including defence, security, trade & investment, energy, agriculture, technology, new and emerging areas, culture and people-to-people ties among others. They also discussed issues of regional and global interest," Jaiswal said.

The CEPA - signed by Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef - is expected to enhance market access, promote investments, and strengthen cooperation across key sectors. It will support trade diversification and supply chain resilience at a time of global economic realignment.

In the last few years, India has signed many free trade agreements (FTAs), which are reaping rewards for our farmers, traders and exporters.  Earlier, PM Modi said the CEPA between India and Oman will give new confidence and energy to the bilateral relations.

Modi is visiting Oman at the invitation of Sultan Haitham. This is his second visit to the Gulf nation. His visit is of special significance as it marks the 70th anniversary of the establishment of diplomatic relations between the two countries.

The Prime Minister arrived here on the last leg of his three-nation tour. He earlier visited Ethiopia and Jordan.

Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the UAE, which came into effect in May 2022.

India-Oman bilateral trade was about USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25. India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.

The main items of India's exports to Oman include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships, boats and floating structures, electrical machinery, boilers, tea, coffee, spices, apparel, and food items.