By Salonee Kulkarni
India and Oman witnessed an economic and strategic collaboration by signing the free trade agreement on 18th December. The impact is visible at both the macro and micro levels as PM Modi marks his three-hour nation tour visit to the West Asian nations. The ripple effect of the strategic decision will see results in sectors such as agriculture, defence, technology, culture, energy and investment. Economic growth, supply chain resilience and boosting innovation can be achieved through negotiations and partnerships between the members of the Gulf Cooperation Council and India.
2025 was a defining year for India in terms of trade partnerships and collaborations. It signed deals and pacts with the UK, Chile, and New Zealand, the US and the Southeast AsianNations (ASEAN). The trade agreement will be signed by the Minister of Commerce and Industry between Oman and India. As per the rule of conduct, the PM will be required to be present when the deal is signed.
The Comprehensive Economic Partnership Agreement (CEPA) dialogue and negotiations began in 2023 and concluded this year. Analyzing the investment attraction it is difficult to deny the potential partnership between the two nations can foster an environment for industries related to textiles, automobile, gems and jewelry and renewable energy. The Minister of Commerce and Industry, Piyush Goyal, highlighted the advantages and possibilities of this collaboration. He further reiterated that both countries venturing into partnerships can explore in the fields of energy transition, the startup ecosystem, food security, and infrastructure development.
Under the CEPA, a bilateral trade will commence, and a project worth $10.61 billion will be supported through an effective partnership. $6.5 billion of goods, mainly mineral fuels and fossils, are imported from Oman. Merchandise worth $4 billion is exported by Oman.
It is anticipated that the PM would attend the business forum between Oman and India. The PM will also speak to Oman’s Indian expat population. New Delhi is planning to close a deal with a few jaguar aircrafts– which Oman has 20-25 of– to upgrade itself from Anglo-French fighter jets on which it currently operates.
The last visit by the PM was in 2018, which established an opportunity for India to stabilise its logistical support and military access through the Duqm port in Oman, further highlighting the importance of the strategic location of Muscat for New Delhi.
Oman was the last destination visited by the PM under the three-nation tour of countries in West Asia. New Delhi is prioritising regions for global cooperation and trade talks, which includes UAE, Kuwait, Saudi Arabia, Jordan and Oman.