- India and Oman sealed a major trade pact during PM Modi’s West Asia visit
- The deal cuts tariffs, opens services and expands market access for Indian exports
- It helps India diversify exports and strengthen its Middle East presence
During the last stop of Prime Minister Narendra Modi's recent tour of West Asia, India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA), which establishes a new chapter in their bilateral relationship.
The agreement represents India's second major trade agreement in the West Asia region, following the signing of the India–UAE CEPA in 2022, and demonstrates New Delhi's continued commitment to expanding economic ties to West Asia.
Among other provisions, the CEPA intends to create a framework for the elimination or reduction of tariffs on a broad spectrum of products and to facilitate cross-border capital flows, as well as liberalisation of trade in services. Negotiations for the CEPA began in November 2024, completed in August 2024, and involved five rounds of talks.
The fifth round was conducted in New Delhi in January 2024. Modi stated at the conclusion of the India–Oman Business Summit that the CEPA will bring a renewed sense of confidence and vitality into the partnership between the two countries based on common history, geographic proximity at the oceans, and ages-old commerce.
In 2024-2025, the total volume of trade between ASEAN nations and Oman was approximately US$ 10.52 billion, with approximately US$ 41 billion being exported from India. Many of these products will experience a rapid increase in production, distribution and consumption, including engineering goods; automobiles; pharmaceuticals; food products; textiles and electronics.
The agreement provides new opportunities for Indian exporters to expand their markets, particularly as they become increasingly concerned about the volatility of global trade due to factors such as the recent imposition of reciprocal tariffs by the USA, and the absence of an India – USA free trade agreement.
According to the Indian Government, the CEPA facilitates Indian exporters with duty free access to more than 98% of Oman’s tariff lines, covering almost all of Indian exports by value. The CEPA also replicates the provisions of the India – UAE Free Trade Agreement, including those for digital trade; intellectual property rights; procurement by government's; and dispute resolution.
The CEPA will also strengthen India’s strategic and economic presence within the Middle East and continues to expand as Oman grows by leveraging the thousands of Indian joint ventures and significant Indian FDI in Oman.