India and Oman have officially strengthened their economic partnership with the signing of a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025, in Muscat, coinciding with Prime Minister Narendra Modi’s visit. This is Oman’s first major free trade deal in nearly two decades and represents a significant milestone in bilateral relations.
The agreement aims to make trade easier and more cost-effective for companies across both nations. By reducing or eliminating customs duties on a wide range of goods, including textiles, automobiles, food products, and jewellery, CEPA is expected to unlock new business opportunities and lower operational costs. This move benefits not only large corporations but also small and medium enterprises looking to expand into each other’s markets.
Beyond trade in goods, the pact also promotes investment, collaboration in services, and cooperation in emerging sectors like renewable energy, logistics, and professional services. Experts believe this will encourage long-term projects and partnerships, strengthening the overall business ecosystem between the two countries.
Bilateral trade between India and Oman currently stands at around USD 10–11 billion annually. With the new agreement in place, trade volumes are expected to rise further, creating opportunities for businesses to innovate and grow.
Officials from both countries described CEPA as a historic step in deepening economic ties. A senior Indian trade official said that beyond tariffs, this pact is about building a stronger, more integrated economic relationship that benefits businesses and consumers alike.
The CEPA signals a new era of economic cooperation, providing companies with a framework to explore joint ventures, investments, and new markets. Analysts view it as a strategic move that strengthens India-Oman relations while offering a model for future international trade partnerships.
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