India and Oman are close to concluding a landmark Comprehensive Economic Partnership Agreement (CEPA), with officials from both sides working to finalise dates for Prime Minister Narendra Modi’s planned visit to Muscat for the signing ceremony.
The pact is expected to be sealed before the end of the year, marking a significant boost to India’s expanding economic and strategic footprint in West Asia.
According to officials familiar with the negotiations, the last outstanding issue has been resolved, clearing the way for the agreement’s conclusion. India had pushed for protection against frequent changes under Oman’s “Omanisation” programme — a labour localisation policy that mandates companies to employ a fixed proportion of Omani nationals. New Delhi has now secured a provision that freezes current Omanisation thresholds for Indian firms, offering predictability for businesses and easier mobility for professionals once the CEPA is operational.
The trade pact is among India’s most ambitious in recent years, providing duty-free access to nearly 98% of tariff lines in the Omani market — broader than the scope offered under the India–UAE CEPA of 2022. The deal covers goods, services, investments, and digital commerce, and is expected to benefit key Indian export sectors such as petroleum products, engineering goods, textiles, minerals, and chemicals. Oman’s current import duties range from 0% to 100%, with higher slabs applying to alcohol, tobacco, and select food items.
In FY 2024–25, India exported goods worth $4.07 billion to Oman and imported $6.55 billion, largely petroleum, fertilisers, and plastics. The agreement is expected to help narrow this gap and support India’s energy and food security by creating more stable supply chains.
Beyond trade, the India–Oman relationship has deepened into a key pillar of New Delhi’s West Asia strategy. Oman remains India’s closest defence partner in the Gulf, the only country in the region with which India conducts regular tri-service military exercises. New Delhi recently hosted the third Army-to-Army Staff Talks (AAST), where both sides advanced plans under the forthcoming Defence Cooperation Plan 2026, focusing on capability development, training, and military education. This follows the success of last year’s “Al Najah” joint exercise in Oman.
Maritime cooperation is another major pillar of the partnership. With Oman’s strategic location near the Strait of Hormuz — a chokepoint that channels nearly one-fifth of global oil trade — its ports play a crucial role in India’s western maritime operations. The Indian Navy benefits from access to Omani facilities for refuelling and logistics, complementing joint efforts in counter-piracy missions and coastal security.
Oman’s role in regional groupings such as the GCC, the Arab League, and the Indian Ocean Rim Association (IORA) further enhances its value as a long-term strategic partner for India.
Diplomatic sources say preparations are under way for Prime Minister Modi’s visit to Muscat, where he is expected to hold meetings with Sultan Haitham bin Tariq alongside the CEPA signing. The agreement, coupled with deepening defence ties, underscores the rising strategic trust between the two nations and reaffirms their shared commitment to stability and prosperity in the Indo-West Asian region.
