During the last leg his West Asia visit, Indian Prime Minister Narendra Modi signed a Comprehensive Economic Partnership Agreement with Oman tightening the trade tides. This agreement is supposed to help in the bilateral trade partnership between both countries and said to be a milestone for India’s trade scene as well. The pact comes as India seeks to diversify export markets amid global trade uncertainties. This also aims to terminate or reduce tariffs, facilitate investments and liberalise services altogether. He also visited Jordan and Ethiopia as part of the West Asia visit which concluded on December 18.
This extensive coverage encompasses nearly the entirety of Indian exports, with specific emphasis on key industries such as gems and jewellery, textiles, pharmaceuticals, and automobiles. In a reciprocal arrangement, India has committed to reducing tariffs on approximately 78% of its own tariff lines, which accounts for nearly 95% of the total value of imports arriving from Oman.
The economic relationship between the two nations is already substantial, with annual bilateral trade exceeding $10 billion. Beyond the fiscal benefits, the partnership holds immense strategic weight for New Delhi, as Oman serves as a vital gateway to the narrow Strait of Hormuz. Positioned between Oman and Iran, this waterway is a critical transit point for global oil shipments, making the alliance essential for India's energy security and regional influence.
During an address in Oman t, Prime Minister Narendra Modi hailed the agreement, stating that the pact would "set a new pace of our trade, add new trust to our investments, and open doors to new opportunities in many sectors." This accord represents India’s second major trade agreement this year, following a similar deal with the United Kingdom. It is a cornerstone of India's broader strategy to diversify its export markets and mitigate the impact of the punishing tariffs currently being imposed by U.S. President Donald Trump.
For Oman, this signing marks a historic milestone as its first bilateral trade agreement since a 2006 deal with the United States. The deal is expected to provide Indian exporters with a robust alternative as they intensify efforts to navigate a shifting global trade landscape. By securing this foothold in the Gulf, India not only strengthens its economic resilience but also solidifies a decades-long diplomatic relationship that has now been elevated to a comprehensive economic partnership.