PM Modi in Muscat: India signs free trade agreement with Oman—only the second for the Gulf nation

In a significant diplomatic breakthrough, India and Oman are set to sign a long-awaited Comprehensive Economic Partnership Agreement (CEPA) on Thursday, as reported by ANI. This would make for a major milestone in their economic relationship and India’s expanding presence in the Gulf region.

#WATCH | Prime Minister Narendra Modi arrives at the hotel of his stay in Muscat, Oman.

(Video: ANI/DD News) pic.twitter.com/38HI3uftvY

— ANI (@ANI) December 17, 2025

The agreement, which will be signed in the presence of Prime Minister Narendra Modi and Oman’s leadership, comes as the final act of
PM Modi’s three-nation diplomatic tour that has also taken him to Jordan and Ethiopia.

At its core, the CEPA is a free-trade framework designed to cut or eliminate tariffs, making it easier for businesses and exporters on both sides to trade goods and services. Senior officials, quoted by ANI, describe it as a “turning point” that will promote greater investment, jobs and mutual prosperity between India and Oman.

Commerce Minister Piyush Goyal said the deal follows nearly two years of meticulous negotiation. “Tomorrow will be an instrumental day,” he told reporters ahead of the signing.

The pact not only opens doors for tariff-free exports such as textiles, chemicals, and engineering goods, which together represent billions in trade, but also strengthens India’s longer-term strategic engagement in the Gulf—including deeper cooperation on energy security, port connectivity and Indian investments in Oman’s logistics and industrial hubs.

More than just trade

Beyond tariff cuts, the CEPA aims to facilitate cooperation in logistics, infrastructure, energy, and technology, aligning with Oman’s role as a gateway to markets in the Gulf, East Africa and beyond.

Prime Minister Modi, speaking at a business summit in Muscat, called the agreement a “blueprint of our shared future,” stressing on its potential not just for commerce, but for strengthened bilateral ties and regional collaboration.

“India-Oman partnership will give a new direction, new speed, and help it reach new heights. In this, all of you play a big role,” PM Modi said.

#WATCH | Muscat, Oman: At the India-Oman Business Summit, PM Narendra Modi says, “The Summit today India-Oman partnership will give a new direction, new speed, and help it reach new heights. In this, all of you play a big role.”

(Video: ANI/DD News) pic.twitter.com/5J8ah0ZLBr

— ANI (@ANI) December 18, 2025

For India, the CEPA with Oman is a strategic win that follows earlier trade deals with other Gulf partners and reflects an ongoing push to diversify export markets and integrate more deeply into global supply chains.