India, Oman ink historic free trade pact to boost bilateral ties

India and Oman signed a historic Comprehensive Economic Partnership Agreement, enhancing trade, investment, and strategic cooperation. PM Modi and Sultan Haitham discussed energy, agriculture, finance, and cultural ties, marking 70 years of diplomatic relations between the two nations

Muscat: India and Oman on Thursday signed a free trade agreement, as Prime Minister Narendra Modi held talks with Sultan Haitham bin Tarik and explored ways to further add greater depth to the bilateral Strategic Partnership.

Modi, who arrived in Oman on Wednesday on the last leg of his three-nation tour, was welcomed by Sultan Haitham at Al Baraka Palace in Muscat before their ?one-on-one talks and the delegation-level meeting.

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“We are taking a historic step forward in India-Oman relations, whose positive impact will be felt for decades to come. The Comprehensive Economic Partnership Agreement (CEPA) will energise our ties in the 21st century,” Modi said.

He said the agreement will give new momentum to trade, investment and open new opportunities across different sectors, and greatly benefit the youth of both nations.

Modi thanked the Sultan for his efforts in finalising the historic CEPA, as he described it as “a new and golden chapter” of bilateral cooperation.

They also exchanged views on regional and global developments and reaffirmed their commitment to regional peace and stability. They reaffirmed their commitment to further enhancing the defence and security collaboration, including in the maritime domain.

The CEPA – signed by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef – is expected to enhance market access, promote investments, and strengthen cooperation across key sectors.

The pact will increase trade between the two countries by reducing trade barriers and creating a stable framework. It will unlock opportunities in all major sectors of the economy, enhance economic growth, create jobs and boost investment flows between both countries.

This is Oman’s second FTA with an individual country and the first FTA they have done in about 20 years.

Modi said he also discussed with Sultan Haitham ways to further boost trade and investment linkages. “Financial services also offer great scope for working together. We talked about how sectors like energy, critical minerals, agriculture, fertilisers and healthcare have rich potential for closer ties,” he said.

“We discussed how cultural and people-to-people linkages can be enhanced. This includes student exchange programmes and other such ways to ensure our youth connect regularly,” Modi said.

While expressing satisfaction at bilateral trade crossing USD 10 billion and two-way investment flows moving forward, Modi underlined that the CEPA will significantly promote bilateral trade and investment, create jobs and open a plethora of opportunities in both countries.

Energy cooperation

The leaders also discussed giving a new thrust to energy cooperation through long-term energy arrangements, renewable energy ventures and green hydrogen and green ammonia projects, according to a statement issued by the Ministry of External Affairs (MEA).

Modi appreciated Oman joining the International Solar Alliance and invited it to join the Coalition for Disaster Resilient Infrastructure and the Global Biofuel Alliance.

He noted that the two countries can benefit from agricultural cooperation, including collaboration in the fields of agricultural science, animal husbandry, aquaculture and millet cultivation.

The two leaders also discussed cooperation between UPI and the Omani digital payment system, RUPAY card adoption and trade in local currencies.

They noted that the completion of 70 years of diplomatic relations between India and Oman is a landmark in the bilateral partnership.

The two sides also signed MoUs in the field of Maritime Heritage and Museums, Agriculture and Allied Sectors and Higher Education. They agreed on an executive programme for cooperation in millet cultivation and agri-food innovation, and adopted a joint vision document on maritime cooperation.

PM Modi thanked the Sultan for his support towards the welfare of the Indian community in Oman. They also discussed the rich cultural heritage shared by the two countries, and highlighted the importance of collaboration between maritime museums and the exchange of artefacts and expertise.