India-Oman free trade agreement to give new confidence to bilateral relations: PM Modi in Muscat

The PM reached Oman for a two-day visit on Wednesday, after visiting Jordan and Ethiopia.

India and Oman are set to sign the free trade agreement, officially termed as CEPA, today. The talks for the agreement began in November 2023 and the negotiations concluded this year, as part of which the two trading partners will either significantly reduce or eliminate customs duties on a maximum number of goods traded between them while easing norms to promote trade in services and attract investments.

According to a statement released by the Ministry of External Affairs following Modi’s address in Oman, the PM stressed that the signing of the CEPA will open pathways of growth, opportunity and enduring partnership between our two great nations.

“Prime Minister encouraged the industry leaders from both sides to make the most of this opportunity and strengthen collaboration in the broad area of trade and investment contributing to a prosperous shared future,” the MEA highlighted.

Modi hails India’s diversity

Addressing the Indian community in Muscat, PM Modi said that India’s diversity is the strong foundation of its culture. “We Indians, wherever we go, we respect diversity,” he said.

“Indian diaspora has become a living example of coexistence and cooperation,” he said. He also hailed the UNESCO tag ascribed to the ‘Deepavali’ festival this year. “Our ‘diya’ will now illuminate not just our homes, but the entire world,” Modi told the gathering.

“India’s nature has always been progressive and self-driven… 21st century India takes bold, swift decisions, moves ahead with big goals, delivers results within a defined timeline,” he said, encouraging the youth diaspora to “Dream big, learn deeply, and innovate boldly,” PTI quoted.

On ties between India and Oman

Hailing the ties between India and the Middle Eastern country, Modi said, “For centuries, India and Oman have enjoyed close and living ties… Both India and Oman are tied not just by geography, but also by generations.”

Whenever India grows, it helps its friends grow as well, Modi said, adding that India is progressing towards becoming the world’s third-largest economy.

“This is beneficial for the entire world. However, it is even more beneficial for Oman because, in addition to being close friends, we are also maritime neighbours. Our people know each other well. We have generations of trust in our business relations, and we understand each other’s markets very well,” he underlined.

Modi also invited companies, including startups from Oman to become its partner as it heads towards growth. He said India’s economy is growing at a high rate because over the past eleven years, India has not just changed policies, but has also changed its economic DNA, news agency PTI quoted him as saying.

Bilateral trade between India and Oman, the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries, reached US$ 10.61 billion in FY 2024-25.