VOI World/ Desk
India and Oman are poised to conclude the long-pending Comprehensive Economic Partnership Agreement (CEPA) during Prime Minister Narendra Modi’s visit to Muscat on December 17–18, marking a major step in deepening India’s outreach to the Gulf region. The development comes as part of Modi’s three-nation tour to Jordan, Ethiopia and Oman, aimed at strengthening political, economic and strategic ties across West Asia and Africa.
The Union Cabinet cleared the draft CEPA text on Friday, following the Shura Council of Oman’s approval on December 10. Negotiations for the agreement began in November 2023, but differences on petrochemicals and refining had delayed finalisation, even after both sides had reached convergence on the text and market-access offers by early 2024. Officials now say the decks are clear for the signing, barring last-minute procedural hurdles, making the India Oman CEPA signing highly likely during Modi’s visit.
According to government sources, the CEPA aims to enhance trade by reducing or eliminating tariff and non-tariff barriers, facilitating smoother customs processes and improving overall investment conditions for businesses in both countries. The agreement is expected to provide preferential treatment for goods originating in India and Oman, ensuring parity with domestic products and strengthening supply chains across sectors such as energy, technology, manufacturing, services and food processing.
During his visit, Modi will meet Sultan Haitham bin Tarik to review cooperation in energy, trade, investment, defence and security. India is also exploring the possibility of a bilateral investment treaty, a proposal strongly backed by Oman. Commerce Minister Piyush Goyal is expected to travel to Muscat for the formal India Oman CEPA signing.
The visit forms part of India’s broader strategy to expand its economic footprint in the Gulf, where trade partnerships are becoming increasingly central to New Delhi’s global ambitions. A successfully concluded CEPA is expected to significantly deepen ties, unlock market opportunities and reinforce India’s long-term presence in the region.
