India-Oman Free Trade Agreement Approved

On 12th December 2025, the Union Cabinet approved the proposed Free Trade Agreement between India and Oman, paving the way for a Comprehensive Economic Partnership Agreement ahead of the Prime Minister’s official visit to the Gulf nation.

Key Points

Context of Approval: The decision comes ahead of the Prime Minister’s three-nation tour to Jordan, Ethiopia and Oman from December 15 to 18, aimed at strengthening India’s engagement with West Asia and Africa.
Oman Visit: The Prime Minister will visit Oman on December 17 and 18 at the invitation of Sultan Haitham bin Tarik, marking his second official visit to the country.
Diplomatic Milestone: The visit coincides with the 70th anniversary of diplomatic relations between India and Oman, underscoring the long-standing nature of bilateral ties.
Legislative Clearance: The Cabinet’s approval followed the clearance of the proposed agreement by Oman’s Shura Council a day earlier.
Negotiation Timeline: Formal negotiations for the Free Trade Agreement began in November 2023 and have culminated in the proposed Comprehensive Economic Partnership Agreement.
Bilateral Trade: Trade between India and Oman stood at 8.947 billion US dollars in 2023-24 and increased to 10.613 billion US dollars in 2024-25, reflecting strong economic momentum.
Investment Links: Over 6,000 India-Oman joint ventures are operational in Oman, accounting for an estimated 7.5 billion US dollars in capital over time.
FDI Flows: Oman’s cumulative foreign direct investment equity inflows into India amounted to 605.57 million US dollars between April 2000 and March 2025.