The India-Omani partnership has gained momentum after the signing of a Comprehensive Economic Partnership Agreement (CEPA), linking trade liberalisation with strategic geography and shared history in the Gulf region. The Comprehensive Economic Partnership Agreement recently signed between India and Oman signals a significant shift towards increased strategic and economic interaction to establish a new chapter in the two countries’ relationship. Maritime trade has historically linked Indian ports to Muscat for centuries, laying the foundation for future cooperation built on established commercial and cultural interactions between Oman and India.
Oman is strategically located outside the Hormuz Strait and has therefore developed into an important regional hub. Oman has a long coastline along the Arabian Sea, making it an important link for Indian businesses and global markets.
For many years, Oman has been an energy supplier to economies throughout Asia despite being limited in hydrocarbon resources. However, political engagement lagged behind the goodwill of both leaders for many years. This changed with Prime Minister Narendra Modi’s renewed high level of diplomatic engagement in December 2025. The Prime Minister’s visit was a watershed moment in the strategic relationship between India and Oman, creating a positive environment for both nations through diplomatic engagement, economic cooperation, and diaspora engagement.
The CEPA will allow Indian companies to readmit almost all of their exports to Oman at zero tariff rates and will provide enhanced opportunities for Indian services, mobility, and investment in Oman’s strategic sectors. Energy security and food security will continue to be major focus areas of the cooperation agreement between India and Oman moving forward into the future.
CEPA and strategic geography position the India-Omani partnership as a Gulf gateway
It is possible for the Indian transshipment trade to take advantage of both Duqm and Salalah Port in Oman, as they provide competitive alternatives. Costs are lower, with tax incentives making these ports more attractive to Indian traders. An important component of India’s ability to use Duqm Port for naval access is the added strategic maritime value. In addition, the two nations’ joint ventures reflect long-standing cooperation between the two nations’ industries regarding fertiliser, refinery, and joint investment projects.
The CEPA expands the breadth of bilateral economic cooperation in digital payments, services, and green energy. Many Indian businesses have already made significant investments in green hydrogen and ammonia projects that fit within Oman’s Vision 2040 and India’s long-term economic growth plans.
Service sector liberalisation allows Indian companies to offer their services in over 100 sub-sectors, including educational, health care, technology, and research services. In addition, traditional medicine commitments aimed at beneficial uses of holistic remedies provide Indian wellness businesses with significant opportunities.
With approximately 6,000 Indian firms working within Oman’s economy and an estimated 700,000 members of the Indian diaspora living in Oman, Indian firms and the Indian diaspora create a critical economic bridge between the two nations.
Through remittances, educational networks, and entrepreneurial activities, the Indian diaspora has built strong bilateral trust between Indians and Omanis. The cultural heritage that has evolved from traditional dhows to the Indian diaspora continues to affect India and Oman’s modern-day diplomatic relationship.
In conclusion, the CEPA will convert the two nations’ historical goodwill into a more structured economic partnership and ultimately position Oman as a stronger player within the India-Middle East-Europe economic corridor.
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