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India is set to sign a Comprehensive Economic Partnership Agreement (CEPA) with Oman, marking a significant step in strengthening New Delhi’s economic engagement with the Gulf region.

The agreement is expected to improve market access, promote investments and enhance cooperation across key sectors. It holds particular significance as it will be Oman’s second free trade agreement with an individual country and its first such pact in nearly two decades, reflecting India’s growing importance as a strategic trade and investment partner.

The proposed CEPA is aimed at supporting trade diversification and strengthening supply chain resilience, helping both countries adapt to global economic realignments.

The pact comes as India continues to expand its network of free trade agreements to support domestic growth and improve global market access for Indian businesses. In recent years, India has signed several FTAs that are already delivering benefits to farmers, traders and exporters.

In 2025, India signed the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, reducing tariffs on over 90 per cent of traded goods. In 2024, it concluded a trade and economic partnership agreement with the European Free Trade Association (EFTA). Earlier, India signed trade pacts with Australia and the UAE in 2022, and with Mauritius in 2021.

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India and Oman share strong economic ties. Bilateral trade stood at USD 8.947 billion in FY24 and rose to USD 10.613 billion in FY25. There are over 6,000 India-Oman joint ventures in Oman, with cumulative Indian investment of USD 675 million and Omani FDI inflows into India of USD 610.08 million since 2000.