Oman and India have signed a major trade deal aimed at boosting bilateral co-operation between the two nations across vital economic sectors.
The Comprehensive Economic Partnership Agreement (Cepa) was signed on Wednesday during a two-day visit by Indian Prime Minister Narendra Modi to Oman.
Oman's Sultan Haitham and Mr Modi witnessed the Cepa signing at the Al Barakah Palace with the deal expected to boost two-way trade and investments, the Oman News Agency (Ona) said in an X post on Thursday.
The Cepa will "establish a strategic framework for expanding bilateral collaboration across vital sectors covering energy, technology, manufacturing industries", Ona said.
During the visit, officials from Oman and India also reviewed ways to expand their bilateral partnership. These would help in "unlocking new investment opportunities", the report said.
“This visit offers an opportunity to explore new avenues of collaboration and add fresh momentum to our partnership,” said Mr Modi upon arrival.
Speaking at the India–Oman Business Forum in Muscat, Indian Commerce and Industry Minister Piyush Goyal said the agreement “opens significant opportunities across sectors including textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy and auto components”.
India is Oman’s third-largest trading partner, with Indian investments in the country surpassing $5 billion, according to India's Ministry of Commerce and Industry. The ministry highlighted energy transition, infrastructure and innovation as future pillars of bilateral co-operation.
On Wednesday, the two countries signed four memorandums of understanding, covering maritime heritage and museums, scientific research and skills development, agriculture and a partnership between the Oman Chamber of Commerce and Industry and the Confederation of Indian Industry, Ona reported.
Asia-Gulf relations
India regards the Gulf as a major partner and part of its extended neighbourhood. The region’s oil and gas reserves are critical to India’s energy security, while Gulf countries host a large Indian expatriate population. Trade, investment and infrastructure projects between India and the Gulf support economic growth within the region and India.
Wednesday's agreement comes on the back of India's effort to diversify its trade strategy. In the Gulf, the world's fourth-largest economy forged a Cepa with the UAE, which resulted in bilateral non-oil trade between the two nations hitting $50.5 billion in the first 12 months from its signing.
India is also looking to stem the effects of the tariffs imposed by the US, which have forced New Delhi to strengthen trade ties elsewhere.
Mr Modi’s visit also underscores the Gulf’s growing role as a place where major Asian powers pursue influence. China’s Foreign Minister Wang Yi visited the Gulf this week, travelling to Saudi Arabia and the UAE to advance political co-ordination and a China-GCC free trade agreement.
Mr Wang has pressed the Gulf Co-operation Council to conclude long-running FTA negotiations, attributing the urgency to rising protectionism and unilateralism as free trade comes “under attack”, according to a statement from the Chinese Foreign Ministry.
He met GCC Secretary General Jasem Albudaiwi in Riyadh last week, and also met leading Saudi officials separately. China has interests in deepening co-operation in economy, trade, investment and other fields with the GCC, Mr Wang said.
Saudi Arabia and China agreed to relax visa rules for certain passport holders when Crown Prince Mohammed bin Salman met Mr Wang in the Saudi capital.
A number of UAE-China partnerships were announced as part of Abu Dhabi Finance Week. Among these, the Abu Dhabi Investment Office (Adio) announced a partnership with the China International Federation of Entrepreneurs to “link its global network of companies and investment institutions with Abu Dhabi’s advanced ecosystem”, Wam reported.
Before arriving in Oman, Mr Modi visited Ethiopia and Jordan, where a Jordanian-Indian Business Forum took place, aimed at cementing economic and trade relations, state media said.
