India – Oman Bilateral relations
 
Why in news?
India and Oman are advancing their strategic partnership through a landmark Comprehensive Economic Partnership Agreement (CEPA) signed on December 17, 2025, alongside robust defense and trade cooperation. Bilateral trade reached $10.61 billion in FY 2024-25, up 18.63%, with India gaining tariff-free access to 98% of Oman's products.​
 

Recent Trade Milestone
  • The CEPA reduces tariffs on goods, liberalizes services, and boosts investments, targeting over $3 billion in Indian exports like textiles, chemicals, and autos.
  • Negotiations accelerated in 2025, building on prior rounds and amending the Double Taxation Avoidance Agreement.
  • This positions Oman as India's 28th largest trading partner and India as Oman's key non-oil import source.
Defense Cooperation
  • Oman was the first Gulf nation to formalize defense ties with India, including joint military exercises since 2006 and a key defense agreement.
  • The Indian Navy enjoys berthing rights at Omani ports, supporting anti-piracy operations in the Gulf of Aden, while the Air Force conducts biannual exercises with Oman's Royal Air Force.​
Economic Relations
  • Bilateral trade reached about $9.9 billion in 2021-22, with India exporting textiles, machinery, rice, and spices, and importing urea, LNG, and petrochemicals from Oman.
  • Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) concluded recently, aiming to boost exports like agriculture and textiles by eliminating duties on $3 billion worth of Indian goods.
  • The Indo-Oman Joint Commission Meeting reviews cooperation in energy, infrastructure, and investment.​
Strategic Importance
  • Oman plays a vital role in India's West Asia policy, energy security, and forums like GCC, Arab League, and IORA, with over 700,000 Indian expatriates strengthening people-to-people links.

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