India-Oman trade pact a watershed moment in our millenia-old relationship, says Piyush Goyal

Muscat [Oman], December 18 : India and Oman are at the cusp of witnessing a "watershed moment in our millenia-old relationship", said Minister of Commerce Piyush Goyal while speaking to a gathering at the Oman-India Business Summit in Muscat, Oman. He said that the Comprehensive Economic Partnership Agreement (CEPA) is the "culmination of our shared vision and dedicated efforts to build a mutually prosperous future for our people."

He noted that the signing of the agreement marks the end of a long journey of working together for the benefit of everyone involved. The agreement is expected to improve market access, promote investments and enhance cooperation across key sectors.

The India-Oman CEPA holds special significance as it is Oman's second free trade agreement with an individual country and the first such agreement Oman is entering into in nearly 20 years. The pact reflects the growing importance of India as a strategic trade and investment partner for Oman.

The agreement is expected to support trade diversification and supply chain resilience, helping both countries adapt to global economic realignment.

The proposed agreement comes at a time when India has been actively expanding its network of free trade agreements to support domestic growth and improve global market access for Indian businesses.

In recent years, India has signed multiple FTAs that are already delivering benefits for farmers, traders and exporters.

In 2025, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, which is reducing tariffs on more than 90 per cent of traded goods and is expected to significantly expand bilateral trade between the two countries.

In 2024, India concluded a trade and economic partnership agreement with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland and Liechtenstein. This agreement is supported by strong investment commitments into India, aimed at boosting long-term economic cooperation.

Earlier, in 2022, India signed the Economic Cooperation and Trade Agreement (ECTA) with Australia, which cuts or eliminates tariffs on most traded goods and opens up new opportunities for Indian exports across sectors.

The same year, India also signed a CEPA with the United Arab Emirates (UAE). This agreement reduced tariffs on over 90 per cent of Indian exports, helping boost trade in key sectors such as gems and jewellery, textiles, leather and engineering goods.

In 2021, India entered into its first Africa-focused trade pact with Mauritius, improving market access and positioning Mauritius as a gateway for Indian trade into the African continent.

The upcoming India-Oman CEPA adds to this growing list of trade agreements.

It highlights India's forward-looking trade strategy, which focuses on diversification, resilience and mutually beneficial growth. India and Oman share strong and growing economic ties. Bilateral trade during FY 2023-2024 stood at USD 8.947 billion, while in FY 2024-25, it increased to USD 10.613 billion. Investment relations between the two countries have also remained robust, supported by a large number of joint ventures.

There are over 6,000 India-Oman joint ventures operating in Oman. The cumulative outward direct investment from India to Oman stands at USD 675 million. Meanwhile, the cumulative FDI equity inflow from Oman to India between April 2000 and March 2025 amounts to USD 610.08 million.

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