Following the disappointment of the American Free Trade Agreement, India prepares to approve a Free Trade Agreement with a Middle Eastern nation.
India and Oman are on the cusp of a significant economic milestone, as the Comprehensive Economic Partnership Agreement (CEPA) between the two countries is expected to be signed imminently. The negotiations for this agreement, which aim to make it easier to trade in services and encourage investments, have been concluded as of August 2025 [2][4][5].
The talks, which began in November 2023, have made significant progress, with negotiations completed by August 2025 [1][2][4]. The agreement text is currently being translated into Arabic in Oman, after which it awaits formal government approvals from both countries before a joint announcement can be made [1]. An official has indicated that the signing is expected much sooner than the earlier estimated 2-3 months timeline, but no fixed date has been confirmed yet [1].
The India-Oman CEPA is poised to be a significant step forward in India's efforts to secure more markets in West Asia and Europe for its labor-intensive products. This move is aimed at offsetting the impact of US tariff hikes, which are expected to affect approximately USD 50-55 billion worth of Indian exports [6].
The majority of India's imports from Oman consist of petroleum products, urea, polymers, pet coke, gypsum, chemicals, and metals. Conversely, India's exports to Oman in 2024-25 were USD 4.06 billion, while imports were USD 6.55 billion [1].
It's worth noting that India already has a similar trade pact with another Gulf Cooperation Council (GCC) country, the UAE, which started in May 2022. India is open to signing separate Free Trade Agreements (FTAs) with other GCC members [7].
Once the legal checks are completed and the CEPA agreement is approved by the cabinets of both India and Oman, it is anticipated that customs duties on most goods will be reduced or removed, further boosting trade between the two nations.
Meanwhile, India's trade talks with the European Union are also progressing well. The next discussion round is scheduled for September [8]. The value of India-Oman trade in 2024-25 was approximately USD 10 billion [1].
This development comes at a time when the US tariff hikes, announced by then-President Donald Trump, are impacting various sectors in India, including textiles, shrimps, chemicals, carpets, and gems & jewellery [6]. The India-Oman CEPA is expected to provide a much-needed respite for these sectors.
In conclusion, the India-Oman CEPA is effectively ready to be signed imminently, pending final procedural approvals. As of mid-August 2025, no concrete date has been made public for its formal signing ceremony. However, with the agreement text already translated and legal checks underway, it appears that the signing is imminent. This agreement is set to strengthen economic ties between India and Oman and open up new opportunities for trade and investments.
References: 1. The Hindu 2. Livemint 3. Business Standard 4. Gulf News 5. The Economic Times 6. The Indian Express 7. The Indian Express 8. The Hindu
The India-Oman CEPA, upon signing, is expected to boost the finance sector by encouraging investments and facilitating trade in services, following Oman's completion of translating the agreement text and India's preparations for formal government approvals. This agreement, when enacted, could provide substantial relief to education-and-self-development sectors in India that have been affected by US tariff hikes.
Given the advancement of the India-Oman CEPA negotiations and the near completion of legal checks, general news outlets predict that the agreement will open up new opportunities in various sectors, such as textiles, shrimps, chemicals, and gems & jewellery, paving the way for an improved economy and enhanced bilateral ties.
