Cabinet approves India–Oman FTA ahead of PM Modi’s key Gulf visit

In a significant step toward expanding India’s economic footprint in West Asia, the Union Cabinet on Friday cleared the proposed Free Trade Agreement (FTA) with Oman. The decision comes days before Prime Minister Narendra Modi embarks on a three-nation tour covering Jordan, Ethiopia and Oman from December 15–18.

PM Modi will visit Oman on December 17–18, marking his second trip to the Sultanate. The visit, at the invitation of His Majesty Sultan Haitham bin Tarik, coincides with the 70th anniversary of diplomatic relations. India and Oman enjoy a multidimensional strategic partnership backed by trade, energy cooperation and longstanding cultural ties, IANS reported.

The Cabinet’s approval follows months of negotiations on the CEPA (Comprehensive Economic Partnership Agreement), which began in November 2023. Officials expect the deal to open fresh avenues for business, market access and investments.

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Oman clears pact; bilateral ties deepen

The move also comes a day after Oman’s Shura Council approved the Gulf nation’s proposed FTA with India, signalling strong political will on both sides. Bilateral trade remains upbeat—reaching US$ 8.94 billion in FY 2023–24 and rising to US$ 10.61 billion in FY 2024–25, according to an official statement.

Investment cooperation has grown steadily over the years. More than 6,000 India–Oman joint ventures are currently operating in Oman, contributing an estimated US$ 7.5 billion in capital investments. These include both formal outward investments of US$ 675 million and capital commitments to joint ventures across diverse sectors.

Oman’s cumulative FDI equity inflow into India between April 2000 and March 2025 stands at US$ 605.57 million, highlighting a strong investment partnership.

A partnership rooted in history

Oman remains a key strategic partner for India and an influential voice in the GCC, Arab League and IORA. The diplomatic relations were established in 1955, however the relationship was up ramped to the level of Strategic Partnership in 2008. But people-to-people engagement between the two countries goes back to almost 5,000 years.

The recently approved CEPA is anticipated to not only reinforce this age-old bond but also open up new economic avenues in the areas of trade, energy, logistics and new sectors.