India and Oman have forged a landmark Comprehensive Economic Partnership Agreement (CEPA) during Prime Minister Narendra Modi's official visit to Muscat from 17-18 December 2025.

This pact, signed alongside a Joint Vision Document on Maritime Cooperation, charts a roadmap for enhanced collaboration in trade, energy, maritime security, and people-to-people ties.

The agreements underscore the evolving "multifaceted strategic partnership" between these maritime neighbours, as highlighted in the joint statement from India's Ministry of External Affairs.

The CEPA aims to dismantle trade barriers and establish a predictable framework for expanding bilateral trade and investment. It supports job creation and fosters greater private sector involvement in both economies. This move aligns with India's ambition to emerge as a manufacturing and services hub, while Oman positions itself as a logistics and energy gateway under its Vision 2040 strategy.

Both nations reviewed opportunities to diversify trade, pinpointing textiles, automobiles, chemicals, equipment, and fertilisers as priority sectors. Discussions advanced on mechanisms for trade in local currencies, which could reduce transaction costs and bolster economic resilience. Leaders also welcomed progress towards a Bilateral Investment Treaty, designed to cultivate an investor-friendly environment and instil confidence among businesses.

Energy cooperation emerged as a cornerstone of the talks. The two sides explored joint ventures in exploration and production, both within India and overseas. Emphasis fell on new and renewable energy domains, including green hydrogen and green ammonia, with proposals for joint investments, technology transfer, and long-term partnerships aligned with sustainable goals.

Defence ties received a significant boost, with commitments to deepen collaboration through joint exercises, training programmes, and high-level exchanges.

Enhanced maritime domain awareness and information-sharing mechanisms will target maritime crimes and piracy. The Joint Vision Document on Maritime Cooperation integrates regional security with blue economy priorities and sustainable ocean resource utilisation.

The visit culminated in seven key signings and adoptions. These encompassed the CEPA itself, alongside memoranda of understanding on maritime heritage and museums, agriculture and allied sectors, and higher education. An MoU between the Oman Chamber of Commerce & Industry and the Confederation of Indian Industry further strengthens business linkages.

Additional initiatives include an executive program on millet cultivation and agri-food innovation. Proposals advanced for an Ayush chair at Oman's National University of Science and Technology and an ICCR Chair Programme of Indian Studies at Sohar University. The planned maiden voyage of INSV Kaundinya to Oman highlights maritime heritage outreach.

Connectivity discussions progressed, with Oman expressing keen interest in air service traffic rights, including destination numbers and code-sharing arrangements. India acknowledged this request, signalling potential for improved aviation links. Such measures could enhance people-to-people exchanges and tourism.

India expressed gratitude to Oman for safeguarding the welfare of its approximately 675,000-strong community in the Sultanate. Oman, in turn, recognised the diaspora's vital contributions to national development. This mutual appreciation reinforces the human dimension of the partnership.

On the security front, both nations condemned terrorism in all its forms and manifestations, pledging sustained cooperation against this threat. The leaders voiced concerns over the humanitarian crisis in Gaza, urging safe and timely aid delivery. They welcomed the first phase of a Gaza Peace Plan and reaffirmed support for a just, lasting resolution, including a sovereign Palestinian state.

These developments reflect a strategic recalibration in India-Oman relations, fortifying supply-chain resilience amid Gulf dynamics.

As India advances its Make in India and Atmanirbhar Bharat initiatives, Oman's Vision 2040 complements these efforts through shared economic and security imperatives. The pacts position both countries to navigate global challenges with greater synergy.

Based On ANI Report