Modi reaches Muscat for final leg of 3-nation tour, India-Oman free trade agreement to be signed today

Prime Minister Narendra Modi has arrived in Muscat for the concluding leg of his three-nation tour, where India and Oman are set to sign a Comprehensive Economic Partnership Agreement (CEPA) today. Commerce and Industry Minister Piyush Goyal will ink the pact on India’s behalf in the Prime Minister’s presence, wrapping up an intensive round of trade negotiations that also involved multiple partners over the past year.

Key highlights of the India–Oman CEPA

Addressing the India–Oman Business Forum, Piyush Goyal said the agreement opens new avenues for both countries, with significant opportunities anticipated in several sectors:

• Textiles and apparel
• Automobiles and auto components
• Gems and jewellery
• Footwear
• Renewable energy

Negotiations for the CEPA began in November 2023 and were concluded earlier this year. The agreement is expected to deepen supply chains, boost investments, and streamline market access.

Areas for future collaboration

Beyond the immediate trade gains, both sides have identified priority areas for wider cooperation:

• Energy transition and green technologies
• Infrastructure development
• Food security
• Innovation and the startup ecosystem

Trade snapshot

Bilateral trade stood at roughly $10.61 billion in the last financial year. India imported about $6.5 billion worth of goods from Oman and exported merchandise worth around $4 billion. Mineral fuels and fertilisers make up a significant share of India’s imports from Oman.

Modi’s agenda in Muscat

Following his arrival, the Prime Minister is scheduled to attend the business forum, meet members of the Indian community in Oman, and hold an official bilateral meeting with Sultan Haitham bin Tariq. He is expected to return to India after completing the engagements.

Strategic depth and defence ties

Oman is one of India’s closest defence partners in West Asia. New Delhi has looked to Muscat for spares for its ageing Jaguar fighter fleet, and Oman continues to operate a number of Jaguars. India also enjoys access to Oman’s Duqm port for logistical support, underscoring the strategic value of the partnership.

New initiatives on the horizon

In addition to the CEPA, new initiatives are anticipated in areas such as investment, energy, defence, technology, agriculture, culture, and people-to-people ties. The visit also coincides with the two countries marking 70 years of diplomatic relations.

Community links and shared history

Oman hosts a vibrant Indian community of over 650,000 people, with some families tracing their roots in the country back more than two centuries. A number of persons of Indian origin also hold Omani citizenship. The deep cultural and economic ties reflect a long history of maritime and commercial exchange.

Part of a broader regional outreach

The Muscat visit concludes a three-nation tour that began in Jordan. Modi also travelled to Ethiopia, where he received a high state honour, and India and Ethiopia elevated their ties to a Strategic Partnership. In Jordan, he met King Abdullah II and held extensive engagements with the government and business community, reflecting New Delhi’s sustained outreach across West Asia and Africa.