India and Oman Set to Announce Historic Trade Pact

India and Oman are nearing the completion of their proposed free trade agreement (FTA), with an announcement expected sooner than initially anticipated. This landmark deal, known as the Comprehensive Economic Partnership Agreement (CEPA), promises to significantly reduce or eliminate customs duties on a wide range of goods, facilitating smoother trade in services and fostering investments between the two nations.

Key Imports and Exports

Oman stands as India's third-largest export destination within the Gulf Cooperation Council (GCC). The bilateral trade between India and Oman has already surpassed $10 billion in 2024–25, with Indian exports valued at $4.06 billion and imports at $6.55 billion. Petroleum products and urea dominate over 70% of India’s imports from Oman, alongside other commodities such as propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

Next Steps

The agreement text is currently being translated into Arabic in Oman. Following this, both nations' cabinets will grant formal approval before a joint announcement is made. "Both countries have, in principle, decided to announce the conclusion and signing together," an official stated, highlighting the mutual commitment to this partnership.