India and Oman have ushered in a new phase of their enduring friendship with the establishment of a Comprehensive Economic Partnership Agreement (CEPA) between the two sides. This comes at a time when the two countries share a dream of realizing mutual economic growth along with the strategic trust they have cultivated over the years.
India-Oman: A Strategic Trade Breakthrough
The CEPA allows Indian exporters to export their goods to Oman on zero duties in over 98% of its tariff lines, which makes it one of India’s largest free trade agreements in West Asia. Indian exporters will also have to follow a scheduled reduction in tariffs on a majority of exports to Oman.
India-Oman: Support for MSMEs & Labour-Intensive Sectors
For the Indian economy, the accord has the potential to provide a new wave of growth opportunities in MSME sectors like textilies, leathers, gems & jewels, pharma and automobiles, where the primary factor of human labor becomes a competitive advantage. The reduction in customs barriers, thus, allows easy entry.
India-Oman: Mobility Gains: Professionals in India
In today’s scenario, when the focus is on Oman’s nationals being employed within the country, the CEPA brings in stronger protective measures, specifically for Indian nationals. Increased numerical quotas on intra-corporate transferees and extended stay options for service professionals are certain positives. This assumes great importance since the nation is home to such a large number of Indian nationals, whose contributions are indispensable.
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India-Oman: Investment & Regulatory Cooperation
The deal has eased terms for Indian businesses operating in Oman, including the allowance of 100 percent foreign direct investment in certain industries. Greater speed for pharmaceuticals approval and the acceptance of international manufacturing standards are also anticipated to simplify and reduce the cost of exporting.
India-Oman: Beyond Trade as a Wider Economic Vision
Prime Minister Modi used the opportunity created by the MoU to encourage Omani investors to think beyond the conventional areas. The areas that came into discussion were renewable energy, digital finance, artificial intelligence, cyber security and agri-innovation.
India-Oman: Enhancing Maritime & Security Cooperation
India and Oman also reiterated their commitment to working together on maritime security, defense, and a blue economy. Collaborations on logistics, critical minerals and digital payments show that their partnership is rich in strategic content.
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India-Oman: A Symbolic & Diplomatic Milestone
The award of Oman’s Order of Oman to Modi established the political context of this event. While it is much more than a trade agreement, the CEPA is also a gesture of confidence, stability and shared prosperity within a partnership of longstanding friends.
Order of Oman Honours India–Oman Ties
Sultan Haitham conferred the Order of Oman, the country’s second-highest civilian honour, on Prime Minister Narendra Modi in recognition of his efforts to deepen bilateral relations and his long-term leadership vision.
Honoured to receive the Order of Oman (First Class). My gratitude to His Majesty Sultan Haitham bin Tarik, the Government and people of Oman for this honour. This is a symbol of affection and trust between the people of India and Oman.
For centuries, our ancestors have been… pic.twitter.com/PCtUccPqg5
— Narendra Modi (@narendramodi) December 18, 2025
Instituted in 1970 by Sultan Qaboos bin Said, the award has also been presented to global leaders such as Saudi Crown Prince Mohammed bin Salman, Belgium’s King Philippe, Jordan’s King Abdullah II, and Egypt’s President Abdel Fattah el-Sisi.
Modi dedicated the honour to the enduring friendship between the two nations, describing it as a reflection of the shared goodwill and trust between the people of India and Oman.
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Disclaimer: This article is based on publicly available information and official statements. It aims to provide analysis, not policy or legal advice.
