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Prime Minister Narendra Modi and Omani Sultan Haitham bin Tarik signed the India-Oman free trade agreement in Muscat on Thursday, December 18.
PM Modi reached Oman on Wednesday, December 17, for the last leg of his three-country four-day foreign visit.
Both the countries are expected to sign the Comprehensive Economic Partnership Agreement (CEPA) in Muscat in the evening on December 18.
PM Modi attended a business forum in Oman, and interact with the Indian diaspora and students.
He also held bilateral talks with Sultan Tarik in Muscat.
Under the agreement, India's exports worth $3 billion is likely to become tariff free. Export opportunities in various sectors such as textiles, food processing, automobiles, gems and jewelry, agrochemicals, and renewable energy, will be opened, CNBC-TV18 has learnt.
The bilateral trade between India and Oman stood at $10.6 bn in financial year 2025, with a trade deficit of $2.48 billion. The total FDI equity inflow from Oman has been $605 million in last 25 years.
India is Oman's fourth largest source of non oil imports & third largest market for non oil exports. India exports light oils, aluminum oxide, rice, boilers, machinery, aircraft components, personal care products, plastics, iron & steel, and ceramics to the gulf nation, while it imports crude oil, LNG, urea, chemicals, ammonia, sulphur, iron ore and construction material.
About 80% of the Indian goods currently face a tariff of 5% in Oman, while select products such as meat, alcohol, and tobacco attract duties up to 100%.
PM Modi reached Oman on Wednesday, December 17, for the last leg of his three-country four-day foreign visit.
Both the countries are expected to sign the Comprehensive Economic Partnership Agreement (CEPA) in Muscat in the evening on December 18.
PM Modi attended a business forum in Oman, and interact with the Indian diaspora and students.
He also held bilateral talks with Sultan Tarik in Muscat.
PM
Narendra Modi tweets, "Grateful for the warm welcome in Oman. The affection and enthusiasm of the Indian community here truly reflect the enduring people-to-people bonds between India and Oman." pic.twitter.com/MwcUMizOBj
— ANI (@ANI) December 17, 2025
Under the agreement, India's exports worth $3 billion is likely to become tariff free. Export opportunities in various sectors such as textiles, food processing, automobiles, gems and jewelry, agrochemicals, and renewable energy, will be opened, CNBC-TV18 has learnt.
The bilateral trade between India and Oman stood at $10.6 bn in financial year 2025, with a trade deficit of $2.48 billion. The total FDI equity inflow from Oman has been $605 million in last 25 years.
India is Oman's fourth largest source of non oil imports & third largest market for non oil exports. India exports light oils, aluminum oxide, rice, boilers, machinery, aircraft components, personal care products, plastics, iron & steel, and ceramics to the gulf nation, while it imports crude oil, LNG, urea, chemicals, ammonia, sulphur, iron ore and construction material.
About 80% of the Indian goods currently face a tariff of 5% in Oman, while select products such as meat, alcohol, and tobacco attract duties up to 100%.
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