India, Oman to sign Free Trade Agreement on December 18, Piyush Goyal confirms
ndia and Oman to Sign Historic Free Trade Agreement Today; Piyush Goyal Hails ‘Defining Milestone’
MUSCAT / NEW DELHI — India and Oman are set to officially sign a landmark Comprehensive Economic Partnership Agreement (CEPA) today, December 18, 2025.1 The pact, confirmed by Union Commerce and Industry Minister Piyush Goyal, marks a transformative moment in West Asian geopolitics and trade, serving as Oman’s first free trade agreement (FTA) in nearly two decades.2
The agreement will be inked in Muscat in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik, underscoring the high-level strategic importance both nations place on the deal.3
A Gateway to Global Markets
Addressing the India-Oman Business Forum on the eve of the signing, Minister Piyush Goyal emphasized that the FTA is not just about bilateral exchange but about positioning Oman as a strategic “gateway.”4
“The sky is the limit in terms of potential,” Goyal stated.5 “Oman opens the doors to the Gulf Cooperation Council (GCC) region, Eastern Europe, Central Asia, and Africa.6 This agreement provides immense opportunities for Indian businesses to integrate into global value chains.”7
The deal comes at a time when bilateral trade has already shown robust growth, reaching approximately $10.5 billion in 2024-25.8 Indian investments in Oman have more than tripled since 2020, crossing the $5 billion mark.9
Key Sectors Set to Benefit
The CEPA aims to significantly reduce or eliminate import duties on a wide range of goods.10 The following sectors are expected to be the primary beneficiaries:
Manufacturing & Industrial: Textiles, footwear, automobiles, auto components, and gems and jewellery.11
Energy & Chemicals: Agrochemicals, green steel, and green ammonia.12
Services: Professional services (accounting/CA), R&D, healthcare, tourism, and education.13
Agriculture: Food processing and food security initiatives.
Four Pillars of Future Collaboration
Minister Goyal identified four “broad areas” where the two nations will deepen their partnership under the new framework:14
Energy Transition: Focus on renewable energy, battery storage, and the green hydrogen ecosystem.15
Infrastructure: Development of multimodal logistics, ports, and export warehouses.16
Food Security: Establishing food parks and cold chains to turn Oman into a regional food hub.17
Startup Ecosystem: Collaboration in deep tech, AI, and logistics software.18
Trade Snapshot (2024-25)
| Category | Details |
| Total Bilateral Trade | ~$10.5 Billion |
| India’s Exports to Oman | ~$4.1 Billion (Naphtha, Rice, Machinery, Textiles) |
| India’s Imports from Oman | ~$6.6 Billion (Crude Oil, LNG, Urea, Chemicals) |
| Investment | $5 Billion+ Indian investment in Oman |
Strategic Context
This is India’s second major trade pact with a GCC member, following the 2022 agreement with the UAE.19 For Oman, it is the first such deal since its FTA with the United States in 2006.20
Beyond commerce, the timing of the signing coincides with the 70th anniversary of diplomatic ties between the two nations.21 Officials suggest that the “trust and shared history” between the two countries—dating back to ancient maritime trade routes—provide a foundation for this modern economic architecture to succeed where traditional trade models have plateaued.
The agreement is expected to be implemented within the coming months, following final domestic approvals.
Would you like me to analyze how this agreement might specifically impact Indian textile or automobile exporters compared to their global competitors?
Key facts
- India, Oman to sign Free Trade Agreement on December 18, Piyush Goyal confirms The Hindu”Land Of Enduring Friendship”: PM Modi Highlights India-Oman Ties In Muscat NDTVIndia, Oman to sign trade agreement today Hindustan TimesPiyush Goyal meets Omans commerce minister to boost economic ties as PM Modi visits Muscat Tribune IndiaPM Modi arrives in Oman on final leg of three-nation visit The Hindu
We will monitor official statements and follow up with more coverage.
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