Oman & India Set to Sign CEPA Very Soon

Oman and India are set to sign a Free Trade Agreement (FTA), officially known as the Comprehensive Economic Partnership Agreement (CEPA), ‘very soon’, with both countries seeking to diversify their trade basket to include more commodities and services, according to Oman’s Ambassador to India, H E Issa Saleh Abdullah Alshibani.

In an interview published by the Press Trust of India (PTI), H E Alshibani said negotiations have concluded and the legislative and administrative processes are in motion.

“Hopefully… we will reach the stage of signing very soon,” he told PTI when asked about the expected timeline for concluding the agreement.

Talks for the CEPA between India and Oman formally began in November 2023.

On the potential impact on bilateral trade following the CEPA, the Oman Ambassador to India said, “We have seen the effect of different CEPA agreements signed by India with other countries.”

According to PTI report, India’s key imports from Oman are petroleum products and urea, which account for more than 70% of imports from the sultanate. Other significant imports (from Oman to India) include propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

“So the main export (from Oman to India), where the trade balance really makes a difference, depends on oil prices and petrochemical prices. I think this is where the serious thinking about the CEPA agreement came out, this business relationship should be expanded to other commodities, where we see other commodities and services exchange between the two (countries),” H E Alshibani told PTI.

India’s Minister of Commerce and Industry, Piyush Goyal, said on Friday that India is in the advanced stages of negotiating the CEPA with Oman and is open to similar trade partnerships with other GCC countries, according to an ANI report.

Speaking to the media during his visit to the UAE, where he attended the 13th meeting of the UAE-India High-Level Joint Task Force on Investments, Goyal said, “As of now, we are at an advanced stage of dialogue with Oman on the FTA, which should conclude soon. Some of the other countries have expressed interest. We are certainly open to free trade agreements with other GCC countries.”

The GCC is one of India’s largest trading blocs. Free trade agreements with these countries are expected to accelerate India’s collaboration in key sectors, including energy, infrastructure, fintech, logistics, renewable energy, and food security.

Oman is India’s third-largest export destination among GCC countries. India has already signed a similar agreement with the UAE, in place since May 2022.

During the Indian financial year 2024-25, bilateral trade between India and Oman stood at US$10.61 billion.