India, Oman set to conclude free trade agreement soon

By Admin

11 Aug, 2025

The proposed free trade agreement (FTA) between India and Oman is on the brink of finalisation, with both nations expected to sign the deal soon. According to an official source, the text of the Comprehensive Economic Partnership Agreement (CEPA) is currently being translated into Arabic in Oman. Once this step is complete, the cabinets of both countries will approve it, paving the way for a joint announcement.

Talks for the CEPA began in November 2023, aiming to reduce or eliminate customs duties on most goods, liberalise trade in services, and boost mutual investments. Such agreements open up new avenues for businesses, making cross-border trade smoother and more cost-effective. An official confirmed that the signing could happen in “much less” than two to three months, signalling a swift conclusion.

Oman is India’s third-largest export destination among Gulf Cooperation Council (GCC) nations. India already enjoys a similar trade pact with the UAE, implemented in May 2022, which has shown positive results in trade expansion. The India-Oman pact is expected to further strengthen India’s footprint in the Gulf region.

In 2024–25, bilateral trade between the two nations crossed $10 billion, with Indian exports worth $4.06 billion and imports valued at $6.55 billion. Petroleum products and urea account for more than 70% of imports from Oman, along with commodities like propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

Once signed, the India-Oman FTA is anticipated to open fresh opportunities for exporters, investors, and service providers, bolstering strategic and economic ties between the two countries.