Cabinet Approves India–Oman FTA Ahead of PM Modi’s Three-Nation Visit

December 12, 2025

New Delhi: The Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved the proposed Free Trade Agreement (FTA) between India and Oman. This agreement is considered a significant step towards deepening trade and investment ties between the two countries.

Approval Ahead of PM Modi’s Three-Nation Visit

The Cabinet’s approval comes ahead of Prime Minister Modi’s three-nation visit to Jordan, Ethiopia, and Oman between December 15 and 18.
This visit will open new opportunities to strengthen India’s economic presence in West Asia and Africa.

Prime Minister Modi will visit Oman on the final leg of his visit on December 17–18. This will be his second visit to Oman and is being held to mark the 70th anniversary of diplomatic relations between the two countries.

India and Oman have a long-standing strategic partnership, with trade, energy cooperation, and cultural ties playing a key role.

India’s consent follows Oman’s Shura Council’s approval

India’s approval comes a day after Oman’s Shura Council approved the FTA. This trade agreement, formally known as CEPA (Comprehensive Economic Partnership Agreement), negotiations for which officially began in November 2023.

Strong surge in bilateral trade

Economic and commercial relations between India and Oman are extremely strong. According to official data—

• Bilateral trade in FY 2023-24: US$8.947 billion
• Bilateral trade in FY 2024-25: US$10.613 billion

Investment flows have also remained consistently strong. Oman has over 6,000 India-Oman joint ventures operating in Oman, contributing approximately US$7.5 billion to the Omani economy to date.

FDI equity inflows from Oman into India (April 2000 – March 2025): US$605.57 million.

Key Pillars of the Strategic Partnership

Oman is an important strategic partner of India and a key partner in forums such as the GCC, Arab League, and IORA. The two countries have 5,000 years of ties, rooted in geographical, historical, and cultural ties. Diplomatic relations were established in 1955 and formally elevated to the level of a Strategic Partnership in 2008.