Cabinet approves India-Oman FTA ahead of Modi's visit

The Union Cabinet, led by Prime Minister Narendra Modi, approved a Free Trade Agreement (FTA) between India and Oman on Friday. The bilateral trade agreement is expected to deepen economic ties and open new avenues for trade and investment between the two nations.

PM Modi is said to embark on a four-day visit to Jordan, Ethiopia and Oman from December 15. This will mark his second visit of PM Modi to Oman as the two countries share an all-encompassing strategic partnership underpinned by centuries-old bonds of friendship, trade linkages and strong people-to-people ties.

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This comes a day after Oman's lower house, the Shura Council, approved the country's FTA with India. The talks for the trade agreement, officially termed as CEPA (Comprehensive Economic Partnership Agreement), formally began in November 2023.

Oman is the third-largest export destination for Indian traders among the Gulf Cooperation Council (GCC) countries. The commerce ministry on Wednesday stated that following approval of the competent authority, the Draft Cabinet Note for signing and ratification was circulated to relevant Ministries. Both sides are now in the process of securing internal approvals., as reported by news agency PTI.

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The Shura Council or Majlis A'Shura on Wednesday concluded its deliberations on the draft CEPA. At the conclusion of the deliberations, the Council approved the free trade agreement.

As per PTI report, India-Oman bilateral trade stood at around USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25. India's key imports were petroleum products and urea, accounting for over 70 per cent of total imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.