India-Oman Trade Deal Expected Soon Before PM Modi’s Visit

The Union Cabinet may take up the draft proposal of the India-Oman free trade agreement on Friday, and the deal is expected to be approved before Prime Minister Narendra Modi’s visit to Oman next week, according to people familiar with the discussions. The Prime Minister is scheduled to begin a three-nation visit to Oman, Jordan, and Ethiopia from December 15 to 18, and the announcement of the free trade pact is likely on December 17 in Muscat. However, the formal declaration will depend on the Cabinet’s approval this week.

Although the Cabinet is set to meet on Friday, officials said the government may not immediately comment on the deal due to the sensitive nature of such agreements. In its year-end review, the Ministry of Commerce confirmed that talks for the Comprehensive Economic Partnership Agreement (CEPA) began in November 2023. Both countries reached agreement on all parts of the pact by March 2024, including the text and market access commitments. However, the Cabinet deferred the proposal in March, which led to further negotiations.

The fourth and fifth rounds of talks were held in September 2024 and January 2025, focusing on revised offers. The draft note for Cabinet approval has now been shared with all ministries, and both sides are in the process of completing their internal clearances. Negotiations were nearly finished early this year, but the deal was delayed due to last-minute issues involving petrochemical goods and concerns over Omanisation, which requires replacing foreign workers with trained local employees.

India has asked Oman to maintain the current sector-wise Omanisation quotas for Indian investors even after the FTA is signed, so that rules do not become more restrictive in the future. The discussions gained new momentum during Commerce Minister Piyush Goyal’s visit to Muscat in January 2025.

If cleared, the CEPA is expected to deepen economic ties, boost bilateral trade, and create more stable long-term opportunities for Indian businesses in Oman’s growing market.