India and Oman have finalised a Comprehensive Economic Partnership Agreement (CEPA), marking a new phase in economic cooperation between the two countries. The agreement followed talks between Prime Minister Narendra Modi and Sultan Haitham bin Tariq.
This is the second comprehensive trade agreement India has concluded in the Gulf region. The first was with the UAE in 2022. For Oman, it is only the second free trade agreement it has signed with an individual partner and its first such arrangement in close to two decades.
The CEPA sets out a framework aimed at simplifying trade procedures, improving access for goods and services, and encouraging long-term investment collaboration. It is also designed to help both countries diversify commercial linkages and strengthen supply chains amid shifting global economic conditions.
In a statement, Chandrajit Banerjee, Director General, Confederation of Indian Industry, said, “We welcome the announcement of the India–Oman Comprehensive Economic Partnership Agreement (CEPA) as an important step in strengthening India’s economic engagement with a key partner in the Gulf.
“The agreement reflects India’s proactive trade strategy and gives new momentum and direction to high-quality, mutually beneficial partnerships that support export growth, investment-led development, and trusted economic cooperation.”
The agreement provides a structured framework to reduce trade frictions, improve transparency in rules, and create more certainty for businesses operating across borders. By addressing goods, services, investment and facilitation together, the pact is expected to support stable and long-term commercial engagement.
From Oman’s perspective, the agreement complements its efforts to position itself as a competitive industrial and logistics hub in the region. Preferential access to the Indian market strengthens the outlook for Omani manufacturers and exporters, while clearer investment provisions are likely to enhance the attractiveness of its industrial zones and ports. The CEPA also supports Oman’s broader diversification objectives by encouraging growth in non-oil sectors and deeper integration with regional supply chains.
For India, the agreement strengthens economic linkages with a strategically located Gulf partner and improves access to key inputs and markets. Easier entry for Indian goods and services, combined with investment opportunities in Oman’s free zones, is expected to benefit Indian companies looking to expand their regional footprint.
The pact also aligns with India’s wider trade strategy of building dependable partnerships that support exports, energy security and connectivity across West Asia
