To boost bilateral trade between the two nations, India & Oman are set to sign the Comprehensive Economic Partnership Agreement (CEPA) Trade Pact “very soon”. With both the nations eyeing diversification of their trade basket and to boost exchange of services, Oman’s Ambassador to India, Issa Saleh Abdullah Saleh Alshibani showed positive response for CEPA Trade among two nations.
Negotiations for the CEPA Trade Pact have concluded
Oman’s Ambassador to India, Issa Saleh Abdullah Saleh Alshibani said that the negotiations that began in November 2023, have finally concluded and the administrative processes along with the legislative are underway to give a final shape to the trade deal. While interacting with PTI, Oman’s Ambassador to India said that “Hopefully… we will reach a stage of signature very soon.” Notably, agreements like CEPA allow trading partners to reduce or eliminate customs duties on a wide range of goods and ease norms to promote trade in services and attract investments.
Impact of CEPA Pact on Bilateral Trade
While discussing about the potential effects of CEPA between the two nations, the ambassador said that “We have seen the effect of different CEPA agreements signed by India with other countries.” Once the CEPA is signed, it is poised to simplify an expand trade beyond energy, covering additional commodities and services.
India’s key imports from Oman include petroleum products and urea, accounting for over 70% of total imports. Other imports include propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron & steel.
Oman Holds an Important Place in the Exporting Nations Destination for India
Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the UAE, since May 2022.During 2024-25, bilateral trade between India and Oman stood at $10.61 billion.
There are over 6,000 India-Oman joint ventures in Oman with estimated investment of over $776 million. Indian companies have emerged as leading investors in Oman, particularly at Sohar and Salalah Free Zones.