India, Oman sign CEPA as Modi, Haitham seek deeper strategic ties

Muscat: India and Oman on Thursday signed a Comprehensive Economic Partnership Agreement (CEPA), a landmark deal aimed at significantly boosting bilateral trade, investment and cooperation in emerging sectors, as Prime Minister Narendra Modi held wide-ranging talks with Oman’s Sultan Haitham bin Tarik in Muscat.

The two leaders welcomed the CEPA as a major milestone in bilateral ties and expressed confidence that it would add new depth to the India-Oman strategic partnership. They also discussed regional and global developments during their meeting at the Al Baraka Palace, attended by External Affairs Minister S. Jaishankar, Commerce and Industry Minister Piyush Goyal, National Security Advisor Ajit Doval and senior officials from both sides.

In a post on X, the Ministry of External Affairs said the leaders explored cooperation across defence and security, trade and investment, energy, agriculture, technology, new and emerging sectors, culture and people-to-people ties, while marking 70 years of diplomatic relations between the two countries.

Industry leaders said the India-Oman CEPA would catalyse bilateral trade and investment, particularly in green energy, agri-innovation startups, technology and manufacturing.

CII Director General Chandrajit Banerjee described the agreement as an important step in strengthening India’s economic engagement with a key Gulf partner. He said the pact enhances market access, trade facilitation, and creates an enabling framework for services, investment, technology collaboration and mobility of professionals.

Mahindra Group CEO and Managing Director Anish Shah noted that Oman is already India’s third-largest export destination in the GCC, with bilateral trade reaching $10.6 billion in 2024–25. He said the CEPA would deepen cooperation by enabling near-complete duty-free access for Indian goods and expanding collaboration in energy, minerals, technology, tourism and agriculture.

Prime Minister Modi described the CEPA as a “blueprint of our shared future”, noting that Indian investments in Oman have more than tripled since 2020 to about $5 billion, spanning green steel, green ammonia, aluminium manufacturing and logistics.

The visit assumes added significance as it coincides with the 70th anniversary of diplomatic relations between India and Oman and follows Sultan Haitham state visit to India in December 2023. India and Oman share a comprehensive strategic partnership, with close cooperation in energy security, maritime affairs and regional stability.

Prime Minister Modi arrived in Muscat on Wednesday, the final leg of his three-nation tour, and was received by Oman’s Deputy Prime Minister for Defence Affairs Sayyid Shihab bin Tarik Al Said. A ceremonial Guard of Honour was accorded to him.

Earlier on Thursday, the Prime Minister addressed Indian community members at the ‘Maitri Parv’ event in Muscat, highlighting India’s achievements in digital payments, infrastructure, manufacturing, space missions and green growth over the past 11 years.

According to the MEA, Modi said India’s Unified Payments Interface now accounts for nearly 50 per cent of global digital transactions, reflecting the country’s progress in building world-class digital public infrastructure.

He also acknowledged the role of the Indian diaspora in strengthening India-Oman ties and reaffirmed the government’s commitment to their welfare. The event was attended by more than 700 students from Indian schools in Oman, which are marking 50 years of establishment in the country.

The Prime Minister also addressed the India-Oman Business Forum, inviting Omani companies to invest and innovate in India, while underscoring the potential to deepen economic linkages between the two countries.