India And Oman to Sign CEPA on December 18, Oman’s First Trade Pact In 19 Years

India and Oman will sign a Comprehensive Economic Partnership Agreement (CEPA) on December 18, 2025, marking a major milestone in bilateral trade relations. Union Commerce and Industry Minister Piyush Goyal announced the development at the India–Oman Business Forum in Muscat.

The agreement, in the making for nearly two years, will be executed in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tariq. This will be Oman’s first free trade agreement in almost two decades, with its last pact signed with the United States in 2006.

Strategic Importance and Bilateral Trade

The CEPA coincides with the 70th anniversary of India–Oman diplomatic relations. Oman is viewed as a strategic gateway to the Gulf Cooperation Council (GCC) region and markets in Eastern Europe, Central Asia, and Africa.

India has emerged as Oman’s third-largest trading partner, with bilateral trade and investments growing steadily. Indian investments in Oman have more than tripled since 2020, crossing $5 billion across sectors such as green steel, green ammonia, aluminium manufacturing, renewable energy, and logistics.

Key Areas of Cooperation Under CEPA

The agreement aims to strengthen trade and investment flows and create a framework for sectoral collaboration. Both countries have identified four priority areas:

• Energy transition: Renewable energy, battery storage, and green hydrogen.
• Infrastructure: Multimodal logistics, ports, and warehousing.
• Food security: Cold storage and food parks serving regional markets.
• Startup ecosystem: Deep tech, logistics, software, and artificial intelligence.
  These areas are expected to drive innovation and economic growth while enhancing supply chain resilience.

Investment Trends and Market Potential

Indian investments in Oman have surged since 2020, supported by policy reforms and strategic partnerships. The CEPA is expected to further boost sectors such as textiles, footwear, automobiles, gems and jewellery, agrochemicals, and renewable energy.

Professional services, tourism, healthcare, and education also present significant opportunities for collaboration. Oman’s efforts to position itself as a regional hub align with India’s goal of expanding its economic footprint in the Gulf.

Read More: India Seeks Limited Trade Pact with Mexico to Mitigate High Tariffs.

Conclusion

The signing of the India–Oman CEPA on December 18 marks a significant milestone in bilateral economic relations. It is Oman’s first trade agreement in 19 years and reflects India’s expanding investment footprint in the country.

The pact is expected to strengthen trade ties and create opportunities across manufacturing, services and technology. It is also positioned to support long-term cooperation in areas such as energy transition, infrastructure development and food security.

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