The Union Cabinet has officially cleared the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which is expected to be signed during Prime Minister Narendra Modi’s upcoming three-nation tour. The PM will visit Jordan and Ethiopia before arriving in Oman on December 17-18. The deal follows several rounds of negotiations that began in November 2023 and recently received approval from Oman’s Shura Council.
Oman is currently India’s third-largest export destination among Gulf Cooperation Council (GCC) countries, with bilateral trade reaching $10.61 billion in 2024-25. The FTA is expected to provide duty-free access for various Indian goods, while India primarily imports petroleum products and urea from Oman. Beyond trade, the visit will also see a unique military cooperation agreement where India will receive retired Jaguar fighter jet spare parts from Oman.
In addition to the Oman pact, the Prime Minister’s tour aims to strengthen ties with Jordan and Ethiopia. In Jordan, the PM will discuss the situation in Gaza with King Abdullah II and celebrate 75 years of diplomatic ties. In Ethiopia, where India is a top-three investor with 675 companies present, talks will focus on aligning economic cooperation with Ethiopia’s recent market reforms.