In a landmark move set to redefine economic partnership, India and Oman officially signed the Comprehensive Economic Partnership Agreement (CEPA) on Thursday, December 18, 2025. Prime Minister Narendra Modi, addressing the India-Oman Business Summit in Muscat, declared the pact a "blueprint of our shared future" that will inject new confidence and energy into the bilateral relationship for the 21st century.
A Historic Milestone for Bilateral Ties
Prime Minister Modi, on a two-day visit to Oman following trips to Jordan and Ethiopia, emphasized the profound and lasting impact of the agreement. "Today, we are taking such a historic decision, the echo of which will be heard for many decades to come," he stated. The CEPA concludes negotiations that began in November 2023 and is designed to significantly reduce or eliminate customs duties on a vast majority of goods traded between the two nations. It also aims to simplify norms to enhance trade in services and mutual investments.
The Ministry of External Affairs, in a statement, reinforced the Prime Minister's vision, noting that the CEPA will "open pathways of growth, opportunity and enduring partnership between our two great nations." The ministry further highlighted Modi's encouragement for industry leaders from both countries to seize this opportunity and deepen collaboration across trade and investment sectors.
Economic Synergy and Shared Future
Underscoring the deep-rooted connections, PM Modi pointed to centuries of close ties, binding the nations not just by geography but by generations of people. He linked India's own economic trajectory directly to Oman's prosperity. "Whenever India grows, it helps its friends grow as well," he said, noting India's progress towards becoming the world's third-largest economy.
This growth, he argued, is particularly beneficial for Oman due to their status as maritime neighbours and close friends with a deep understanding of each other's markets. Modi extended an invitation to Omani companies and startups to become partners in India's growth story, attributing the high growth rate to a fundamental change in the country's "economic DNA" over the past eleven years.
The economic foundation is already strong. Bilateral trade between India and Oman stood at US$ 10.61 billion in the financial year 2024-25, with Oman being the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. The CEPA is poised to substantially amplify these figures.
Engaging the Diaspora and Celebrating Diversity
Earlier, while addressing the vibrant Indian community in Muscat, Prime Minister Modi celebrated India's diversity as the bedrock of its culture, a trait carried by Indians worldwide. "Indian diaspora has become a living example of coexistence and cooperation," he remarked.
He also took pride in UNESCO's recent recognition of the 'Deepavali' festival, symbolizing how India's cultural light now illuminates the global stage. Urging the youth in the diaspora to "Dream big, learn deeply, and innovate boldly," he portrayed a modern India that is progressive, makes bold decisions, and delivers results within set timelines.
The signing of the India-Oman CEPA marks a strategic consolidation of a key partnership in the Middle East. It is more than a trade deal; it is a framework for a comprehensive economic integration that leverages historical bonds, geographical proximity, and shared aspirations for a prosperous future.
