India and Oman are set to sign the trade treaty “very soon”, confirmed Oman’s Ambassador to India, Issa Saleh Abdullah Saleh Alshibani, saying both countries are eyeing an expansion of their trade basket that includes the exchange of commodities and services.
While negotiations between India and Oman had been underway since November 2023, they were recently concluded, after which the Comprehensive Economic Partnership Agreement (CEPA) made its way to the legislative and administrative departments for clearance, Alshibani said.
"Hopefully... we will reach a stage of signature very soon," he said, when asked about the timeline for the pact to be formally signed.
In agreements such as the CEPA, two trading partners significantly reduce or eliminate customs duties on a maximum number of goods traded between them while also easing norms to promote trade in services and attract investments.
Also Read: India, Oman FTA to be concluded soon: Official
On the impact in terms of bilateral trade after signing of the CEPA, Alshibani said the CEPA would simplify and increase the scope of trade between India and Oman beyond energy and into other commodities.
India's key imports from Oman so far are petroleum products and urea, which account for over 70 per cent of the total imports. Other key products imported from the Middle Eastern country are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.
"So the main export (from Oman to India) where the trade balance really makes a difference, it depends on oil prices and petrochemical prices. I think this is where the serious thinking about the CEPA agreement came out, this business relationship should be expanded to other commodities, where we see other commodities and services exchange between the two," he added.
Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries, with India-Oman having signed over 6,000 joint ventures estimated at over USD 776 million.
During 2024-25, bilateral trade between the two stood at USD 10.61 billion.
Meanwhile, Indian companies have emerged as leading investors in Oman, particularly at Sohar and Salalah Free Zones.
The cumulative FDI equity inflow from Oman to India between April 2000 and March 2025 is USD 605.57 million.
India already has a similar agreement with another GCC member, the UAE, since May 2022.
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