Pakistan is watching closely as Oman takes a major step toward deepening its economic ties with India after the Shura Council formally approved the draft Comprehensive Economic Partnership Agreement (CEPA).
The endorsement allows the agreement to move forward in Oman’s legislative process, bringing the two countries closer to signing a wide-ranging trade and investment pact that will reshape regional commercial linkages.
The approval arrives ahead of Prime Minister Narendra Modi’s visit next week. Diplomats on both sides have described the upcoming visit as an important opportunity to conclude new economic arrangements, including the CEPA framework.
Trade pacts such as CEPA typically involve wide tariff reductions, streamlined customs procedures, and clearer rules for services and investment, changes that can redefine economic engagement for years to come.
For Oman, the agreement aligns with its national goal of broadening the economic base beyond oil and gas. CEPA is expected to reduce or remove tariffs on a large share of traded goods, improve export potential for Omani products, boost competitiveness for manufacturers and downstream industries operating in hubs such as Sohar, Duqm and Salalah, attract new investors seeking access to both the Gulf and Indian markets, and support diversification efforts under Oman Vision 2040.
Oman’s industrial clusters in petrochemicals, metals, logistics, and food processing stand to benefit from more predictable market access and lower entry costs. India also gains from the agreement, as Oman is a strategically located gateway to the Gulf region and a steady supplier of key commodities.
Once CEPA takes effect, India can expect lower import costs for petroleum products, urea, polymers, and other industrial inputs; improved access for Indian goods such as machinery, engineering products, textiles, processed foods and electronics; more opportunities for Indian firms operating in Oman’s free zones and industrial estates; and a stronger foothold in West Asia supporting connectivity initiatives like the India–Middle East–Europe Economic Corridor (IMEEC).
India is already one of Oman’s top trading partners, and more than 6,000 joint ventures operate in the Sultanate. In 2024–25, bilateral trade reached $10.61 billion.
Oman’s ambassador to India, Issa Al Shibani, has said that Modi’s upcoming visit reflects the “friendship” between the two nations and is expected to strengthen investor confidence. With CEPA negotiations already concluded at the technical level, both sides are preparing for the final political steps required for the agreement to be signed.
Both countries view the CEPA not just as a trade document, but as a platform for wider cooperation in logistics, renewable energy, chemicals, mining, technology and shipbuilding. Oman’s industrial zones, especially Sohar with its integrated port–free zone model, have become increasingly attractive to Indian companies looking to expand in the Gulf.
For Pakistan, which relies heavily on Gulf partners for trade, labour routes and investment, the accelerating Oman–India economic corridor underscores a regional shift it will monitor with unease.
