India and Oman are on the cusp of signing a transformative Comprehensive Economic Partnership Agreement (CEPA), poised to deepen economic ties and diversify trade beyond traditional energy exports, according to Oman’s Ambassador to India, Issa Saleh Abdullah Saleh Alshibani. In an exclusive interview with PTI, Alshibani revealed that negotiations, which began in November 2023, have concluded, and both nations are now finalizing legislative and administrative steps to seal the deal.
“Hopefully… we will reach a stage of signature very soon,” Alshibani said, signaling an imminent agreement that will slash customs duties and streamline trade in goods and services while boosting bilateral investments.
The CEPA is expected to significantly expand the scope of India-Oman trade, which reached $10.61 billion in 2024-25. Currently, India’s imports from Oman are heavily skewed toward petroleum products and urea, comprising over 70% of imports, alongside items like pet coke, gypsum, chemicals, and iron and steel. Alshibani emphasized the need to diversify, noting, “This business relationship should be expanded to other commodities and services exchange between the two.”
Also Read: Study Reveals that Russia-Ukraine War and Coal Chaos Push India’s Electricity Bills Higher
Oman, the third-largest export destination for India among Gulf Cooperation Council (GCC) countries, stands to benefit from the agreement modeled on India’s successful CEPA with the UAE, implemented in May 2022. “We have seen the effect of different CEPA agreements signed by India with other countries,” Alshibani added, highlighting the potential for a broader trade basket.
The economic partnership is already robust, with over 6,000 India-Oman joint ventures in Oman, boasting investments exceeding $776 million, particularly in the Sohar and Salalah Free Zones. Indian companies are among the leading investors in these zones, while Oman’s cumulative FDI equity inflow to India from April 2000 to March 2025 totals $605.57 million.
As both nations prepare to ink the CEPA, the agreement promises to unlock new opportunities, reduce trade barriers, and foster a dynamic exchange of goods, services, and investments, cementing India and Oman as key economic partners in the region.
Also Read: India Bullet Train Tunnel Breakthrough Marks Big Step Toward 2027 Launch