India and Oman have signed a significant trade agreement after nearly two years of negotiations. The Comprehensive Economic Partnership Agreement (CEPA) was signed in Muscat on December 18, 2025, during Indian Prime Minister Narendra Modi’s visit to Oman. This marks the first free trade pact Oman has signed with another country in around two decades.
Negotiations for the agreement began in November 2023 and involved five rounds of detailed discussions. Both sides worked closely to ensure that the pact benefits a wide range of sectors, including textiles, automobiles, food processing, gems and jewellery, and more. Under the agreement, many goods will see reduced or eliminated customs duties, making trade cheaper and easier for businesses in both countries.
The CEPA is expected to not only boost trade but also increase investments between India and Oman. It opens up new opportunities in sectors such as renewable energy, logistics, and professional services. Companies from both nations will benefit from easier access to each other’s markets, strengthening business and economic ties.
India is already one of Oman’s major trading partners, with bilateral trade estimated at around USD 10–11 billion in recent years. The agreement could further expand this trade by facilitating smoother movement of goods and services and by encouraging businesses to explore new areas for collaboration.
Both Prime Minister Modi and Omani leaders have described the agreement as a historic step in strengthening the long-standing partnership between the two countries. They highlighted that the pact reflects a shared vision for deeper economic cooperation and greater integration of trade and investment opportunities.
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