India to Sign Free Trade Agreement with Oman During Modi Visit

India is set to sign a free trade agreement with Oman as Prime Minister Narendra Modi arrived in Muscat, marking the final stop of his three-nation tour. The agreement is expected to strengthen cooperation between the two countries in key areas such as trade, investment, energy, defence, technology, agriculture, culture, and people-to-people ties. Several important announcements are also expected during the visit.

Commerce and Industry Minister Piyush Goyal will sign the agreement on behalf of India in the presence of Prime Minister Modi. This deal concludes nearly a year of detailed trade talks between the two countries. India has been actively expanding its trade partnerships across West Asia and already has a similar agreement with the UAE, while negotiations are ongoing with the Gulf Cooperation Council, which includes Oman and five other Gulf nations.

Speaking at the India-Oman Business Forum, Goyal said the agreement holds strong potential for growth in sectors such as textiles, automobiles, gems and jewellery, renewable energy, auto components, and footwear. Talks for the Comprehensive Economic Partnership Agreement began in November 2023 and were successfully concluded earlier this year.

The agreement is expected to boost bilateral trade, which stood at $10.61 billion in the 2024–25 financial year. India imported goods worth about $6.5 billion from Oman, mainly mineral fuels and fertilisers, while exporting goods worth nearly $4 billion. Both sides also see future opportunities in energy transition, infrastructure development, food security, and startups.

During his visit, Prime Minister Modi is attending business events, meeting the Indian community in Oman, and holding official talks with Sultan Haitham bin Tariq. Oman is one of India’s key defence partners in the region, and discussions are ongoing on defence cooperation, including aircraft maintenance support. India also has strategic access to the Duqm port in Oman for military logistics.

India and Oman are celebrating 70 years of diplomatic relations, reflecting deep historical and cultural ties. Oman is home to over 6,50,000 Indians, with many families living there for generations. This visit is Modi’s second trip to Oman, following his earlier visit in 2018, and highlights India’s growing focus on strengthening relations across West Asia.