Did the Cabinet Approve the India-Oman Free Trade Pact Ahead of PM Modi’s Visit?
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Synopsis
In a significant move, the Union Cabinet approved the India-Oman Free Trade Agreement ahead of PM Modi's crucial visit to Oman. The FTA is expected to deepen economic ties, marking a major step in India's strategic partnerships in the region. Stay tuned to discover the implications of this agreement on bilateral trade and investments.
Key Takeaways
- Cabinet Approval: The Union Cabinet approved the India-Oman Free Trade Agreement.
- PM Modi's Visit: Modi will visit Oman from December 17-18.
- Economic Growth: Bilateral trade reached US$ 8.947 billion in FY 2023-2024.
- Joint Ventures: Over 6,000 joint ventures exist between the two nations.
- Strategic Partnership: The relationship has historical roots and was upgraded to a Strategic Partnership in 2008.
New Delhi, Dec 12 (NationPress) The Union Cabinet, presided over by Prime Minister Narendra Modi, has granted approval for the proposed Free Trade Agreement (FTA) between India and Oman, with the goal of strengthening trade and investment relations between the two nations.
This decision comes just before Prime Minister Modi's imminent three-nation journey to Jordan, Ethiopia, and Oman from December 15-18, which is anticipated to create significant opportunities for expanding India’s economic influence in West Asia and Africa.
During the final part of his visit, PM Modi will be in Oman from December 17-18, marking his second trip there at the invitation of His Majesty Sultan Haitham bin Tarik. This visit coincides with the 70th anniversary of diplomatic relations between the two nations. India and Oman enjoy a rich and multifaceted Strategic Partnership supported by robust trade ties, energy collaboration, and cultural connections.
The Cabinet's approval follows the endorsement of the proposed FTA by Oman’s Shura Council just a day earlier. Negotiations for the trade agreement, officially called the Comprehensive Economic Partnership Agreement (CEPA), commenced in November 2023.
The economic relationship between India and Oman is vibrant and thriving. The bilateral trade for FY 2023-2024 reached US$ 8.947 billion, with projections for FY 2024-25 estimating a rise to US$ 10.613 billion, as per an official statement.
Investment flows between the two countries have been equally strong, with numerous joint ventures established in both India and Oman. Currently, there are over 6,000 India-Oman joint ventures in Oman, contributing approximately $7.5 billion to Oman's economy through long-term capital investments. This includes formal outward direct investment of $675 million and the total value committed to various joint ventures, as well as investments from Indian investors in third countries into Oman. The cumulative FDI equity inflow from Oman to India from April 2000 to March 2025 is estimated at $605.57 million.
The Sultanate of Oman is a key ally of India and an important partner within the Gulf Cooperation Council (GCC), the Arab League, and the Indian Ocean Rim Association (IORA). The historical ties between India and Oman date back over 5,000 years, with formal diplomatic relations established in 1955 and the relationship elevated to a Strategic Partnership in 2008.
Point of View
The approval of the India-Oman Free Trade Agreement highlights India's commitment to strengthening its economic ties in the Gulf region, reflecting the nation's broader strategy to enhance its influence and partnerships globally. The historical and cultural connections between India and Oman further bolster this relationship, promising mutual benefits in trade and investment.
NationPress
12/12/2025
Frequently Asked Questions
What is the significance of the India-Oman Free Trade Agreement?
The India-Oman Free Trade Agreement aims to enhance trade and investment relations, marking a significant step in strengthening bilateral ties and expanding economic opportunities.
When will PM Modi visit Oman?
PM Modi is scheduled to visit Oman from December 17-18, coinciding with the 70th anniversary of diplomatic relations between India and Oman.
What are the economic impacts of this agreement?
The FTA is expected to boost bilateral trade, which reached US$ 8.947 billion in FY 2023-2024, and create more investment opportunities in various sectors.
How many joint ventures are there between India and Oman?
There are over 6,000 India-Oman joint ventures in Oman, contributing significantly to the local economy.
What historical ties do India and Oman share?
India and Oman have a historical relationship dating back over 5,000 years, with formal diplomatic relations established in 1955.
