Business
New Trade Pact Strengthens India’s Economic Engagement with Gulf Region
India and Oman will formally operationalise their Comprehensive Economic Partnership Agreement (CEPA) from June 1, strengthening bilateral trade, investment, and economic cooperation between the two countries.
India and Oman will bring their Comprehensive Economic Partnership Agreement (CEPA) into force from June 1, marking a significant milestone in bilateral economic relations.
The decision is expected to be formally announced by both countries on Monday.
The agreement is aimed at deepening trade and investment ties, enhancing market access, and promoting economic cooperation across a range of sectors.
Fifth Major Trade Pact Under Modi Government
The India-Oman CEPA becomes the fifth major free trade agreement implemented during the tenure of Prime Minister Narendra Modi.
Since 2014, India has implemented the following trade agreements:
Agreement Partner Implementation Date Mauritius April 2021 United Arab Emirates (CEPA) May 2022 Australia December 2022 European Free Trade Association (EFTA) October 2025 Oman (CEPA) June 2026
Expected Benefits
The CEPA is expected to:
- Boost bilateral trade volumes.
- Improve market access for exporters.
- Encourage investment flows between India and Oman.
- Strengthen supply chains and industrial cooperation.
- Enhance collaboration in services, logistics, energy, and manufacturing sectors.
Oman is one of India’s key strategic and economic partners in the Gulf region, with strong ties in trade, energy, maritime connectivity, and diaspora engagement.
Strengthening India-Gulf Economic Ties
The agreement reflects India’s broader strategy of expanding economic partnerships with Gulf nations and diversifying export markets.
Trade experts believe the CEPA could further strengthen India’s commercial presence in West Asia while providing businesses from both countries with greater opportunities for growth and investment.
The formal implementation from June 1 is expected to open a new chapter in India-Oman economic relations and contribute to deeper regional economic integration.