India Signs Free Trade Agreement With Oman To Boost India’s Economic Ties In Gulf
December 19, 2025
India signed a Free Trade Agreement (FTA) with Oman on Thursday, December 18. It is basically a Comprehensive Economic Partnership Agreement (CEPA) with Oman to boost the New Delhi’s economic engagement with the Gulf region and reinforce its broader trade diversification strategy. It was signed during Prime Minister Narendra Modi visit to Oman.
It’s Oman’s second free-trade agreement with an individual country
Notably, this will be Oman’s second free-trade agreement with an individual country and its first such agreement in nearly two decades. For India, the FTA with the gulf country would boost the country’s presence in the strategically significant gulf market, playing a significant role in energy security, remittances, logistics and regional trade flows. The free trade agreement intends to improve market access for goods and services. It promotes two way investments and improving cooperation across key sectors. It will support trade diversification and supply chain resilience.
Some more FTAs of India with other nations
In this year, India signed a Free Trade Agreement (FTA) with United Kingdom which decreases tariffs on over 90 per cent of traded goods. It is expected to significantly increase the bilateral trade. In 2024, India sealed a trade and economic partnership agreement with the European Free Trade Association (EFTA) bloc, consisting Switzerland, Norway, Iceland, and Liechtenstein. It was supported by strong investment commitments into the Indian economy.
In 2022, India signed Economic Cooperation and Trade Agreement (ECTA) with Australia. This agreement discarded tariffs on most traded goods and opened new export opportunities for Indian products. Not only this, but India also signed Comprehensive Economic Partnership (CEPA) with United Arab Emirates decreasing tariffs on around 90 percent of Indian exports and giving a significant strength to sectors such as gems and jewellery, textiles, leather and engineering goods.
Furthermore, in 2021, India sealed its first Africa-focused trade agreement with Mauritius that would enhancing market access and positioning the island nation as a gateway for Indian businesses into African markets.