New Delhi: India is set to sign a free trade agreement with Oman Thursday as Prime Minister Narendra Modi reached the West Asian nation at the end of his three-nation tour. A number of key agreements are expected during the visit in sectors such as trade, investment, energy, defence, technology, agriculture, culture and people-to-people ties.
New Delhi has sought to deepen its trading relationships across West Asia, with an agreement already in place with the United Arab Emirates (UAE) and negotiations ongoing with the Gulf Cooperation Council (GCC). The GCC consists of Oman, the UAE, Bahrain, Saudi Arabia, Kuwait and Qatar.
Commerce and Industry Minister Piyush Goyal will be signing the agreement on behalf of India in the presence of Modi, capping a year of extensive trade negotiations with a number of countries, including the UK, the European Union (EU), Chile, the US, New Zealand and the Association of Southeast Asian Nations (ASEAN).
In an address to the India-Oman Business Forum Wednesday, Goyal highlighted that there was “immense potential” in sectors such as textiles, automobiles, gems and jewellery, renewable energy, auto components and footwear under the agreement. Negotiations for the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman began in November 2023 and were concluded earlier this year.<
The minister also outlined potential areas for future collaboration—energy transition, infrastructure development, food security and the startup ecosystem. The CEPA is expected to promote bilateral trade that stood at $10.61 billion in the last financial year (2024-2025).
India imported roughly $6.5 billion worth of goods from Oman while exporting merchandise worth $4 billion. Indian imports largely mineral fuels and fertilisers from Oman.
After landing in Muscat Wednesday, the Prime Minister will attend the business forum today and is expected to hold an interaction with the Indian community in Oman apart from his official bilateral meeting with Haitham bin Tariq, the Sultan of Oman. Modi is set to return to India from the West Asian nation.
Oman has emerged as one of India’s closest defence partners in the West Asian region. New Delhi is looking at Muscat for spares for its ageing fleet of Jaguar aircraft. Oman still has around 20-24 Jaguars. India is the only country still operating the Anglo-French fighter.
There is an expectation for new initiatives to be announced in areas such as investment, energy, defence, technology, agriculture, culture and people-to-people ties apart from the CEPA. India and Oman are also celebrating 70 years of diplomatic ties, which were first established in 2025.
This visit is Modi’s second to Oman following his last visit in 2018. The West Asian country is home to over 6,50,000 Indians, with some families living for over two centuries. At least 1,825 persons of Indian origin hold Omani citizenship. Till around 1970, Oman used the Indian Rupee and the Gulf Rupee respectively, before introducing its own currency. India also has military access to the Duqm port in Oman for logistical support since at least 2018, which further indicates the importance of Muscat for New Delhi.
The visit to Oman is the last-leg of a three-nation tour that began in another West Asian nation, Jordan. The Indian PM has made the region a key priority for New Delhi, with visits to the UAE, Qatar, Kuwait, Saudi Arabia, Jordan and Oman in the last couple of years. Modi also paid a two-day visit to Ethiopia, where he was awarded the Great Honour Nishan of Ethiopia.
India and Ethiopia elevated their bilateral relationship to that of a “Strategic Partnership” Tuesday. In Jordan, the Prime Minister met with King Abdullah II apart from a number of official meetings with the Jordanian government and business community.