Oman and India Sign New Trade Deal to Deepen Economic Ties

Post by : Saif Nasser

Oman and India have taken a major step to strengthen their economic relationship by signing a Comprehensive Economic Partnership Agreement (CEPA). The deal is aimed at expanding trade, boosting investment, and creating smoother business links between the two countries.

The agreement was signed during Indian Prime Minister Narendra Modi’s visit to Muscat, where he was welcomed by Oman’s Deputy Prime Minister for Defence Affairs, Sayyid Shihab bin Tariq Al Said. Oman's state news agency confirmed the signing on Thursday.

According to the official statement, the agreement is designed to make it easier for goods and services to move between Oman and India. It also sets up a long-term plan for deeper cooperation across many sectors of the economy.

Both countries see this partnership as a way to unlock new business opportunities. For India, Oman is a key gateway to the Gulf region, while Oman views India as a fast-growing market with strong demand for energy, logistics, technology, and services.

The CEPA is expected to reduce trade barriers and encourage companies from both sides to invest more freely. It may also support small and medium-sized businesses by giving them better access to new markets and supply chains.

Economic experts believe the agreement will help diversify Oman’s economy beyond oil by attracting Indian investment in manufacturing, tourism, renewable energy, and ports. For India, the deal strengthens its presence in the Middle East and supports its goal of expanding exports.

Beyond trade and investment, the partnership reflects the growing political and strategic trust between the two nations. Oman and India already cooperate closely in areas such as energy security, maritime trade, and regional stability.

With this agreement now in place, both governments are expected to work on detailed rules and timelines to turn the promises into real economic gains. If implemented well, the CEPA could significantly increase trade volumes and create jobs in both countries in the coming years.