India, Oman Set to Sign Free Trade Deal in Presence Of PM Modi

New Delhi: India and Oman are set to sign a long-awaited Free Trade Agreement (FTA) on Thursday in Muscat. The Comprehensive Economic Partnership Agreement (CEPA) will be formally signed in the presence of Prime Minister Narendra Modi, who is on the final leg of a three-nation tour that included Jordan and Ethiopia.

Why is this deal significant?

This pact marks a major step in economic cooperation between the two countries. Oman has not signed a similar trade agreement in nearly two decades. Oman's last trade agreement was signed with the US in 2006. India and Oman launched negotiations on CEPA in November 2023.

Officials say the agreement will reduce or eliminate tariffs on many traded goods and make it easier for Indian and Omani firms to invest and operate across borders.

Who is involved in the signing?

Prime Minister Modi and senior Omani officials, including Sultan Haitham bin Tariq, are expected to witness the formal signing ceremony. Union Commerce and Industry Minister Piyush Goyal is already in Muscat and has been part of preparatory talks.

Which sectors could benefit?

Piyush Goyal said that the deal could open up opportunities in many areas. These include textiles, food processing, auto and auto components, gems and jewellery, and renewable energy.

“The free trade agreement offers immense opportunities for all of you,” said Goyal at a Oman-India business event in Muscat on Wednesday.

The agreement also aims to boost cooperation in services such as tourism, healthcare, and education.

What’s the broader context?

Bilateral trade between India and Oman has grown in recent years, with both sides looking to deepen economic and strategic links. Oman is an important partner in the Gulf region, acting as a gateway for Indian businesses to other markets.

The CEPA is expected to enhance these ties and increase people-to-people exchange and investment flows between the two countries in the years ahead.