India-Oman free trade pact to infuse new energy into bilateral trade: PM Modi

Muscat, Dec 18 (PTI) Prime Minister Narendra Modi on Thursday said the India-Oman Comprehensive Economic Partnership (CEPA) will infuse new energy into bilateral trade and investment ties while creating opportunities for mutual growth.

He was addressing the India–Oman Business Forum here.

In his address, Modi highlighted the centuries-old maritime trading ties between the two countries, from Mandvi to Muscat, which today form the bedrock of vibrant commercial exchanges.

He said that 70 years of diplomatic relations represent the trust and friendship built over centuries.

India and Oman signed a free trade agreement on Thursday, which will provide duty-free access to 98 per cent of India's exports, including textiles, agri and leather goods in the Gulf country.

Describing the CEPA as the blueprint for India-Oman's shared future, the visiting Prime Minister called upon business leaders to realise the full potential of the trade pact.

"Today, we are making a historic decision whose impact will be felt for decades to come. The Comprehensive Economic Partnership Agreement, or CEPA, will infuse our partnership with new confidence and energy in the 21st century," he said.

The pact, he said, will give new momentum to bilateral trade, instil new confidence in investment, and open new doors of opportunity in every sector.

Speaking about India's economic success in the last 11 years, he said the country was well on its way to becoming the third largest economy in the world on the back of next generation reforms, policy predictability, good governance and high investor confidence.

"In fact, over the past 11 years, India has not only changed its policies, but it has also changed its economic DNA," he said.

He further added that India’s high growth of over 8 per cent in the last quarter in an environment of global uncertainty highlights its resilient nature and inherent strengths.

"India's progress has always been a story of shared progress. When India grows, it makes its friends partners in its growth. We are doing the same today," Modi said, adding that in India's growth journey, there are ample opportunities for Oman.

The Prime Minister underlined that India is working at speed and scale to create world-class infrastructure, logistics, connectivity, trusted supply chains, manufacturing capacities and green growth to boost "ease of living” and "ease of doing business”.

He informed the gathering about the reforms, including Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC), that India has implemented in recent years.

Modi invited Omani businesses to look beyond traditional areas of energy, oil and gas, petrochemicals and fertilisers, and explore opportunities in the fields of green energy, solar parks, energy storage, smart grids, agri-tech, fintech, AI and cyber security.

He also proposed the creation of the India-Oman Agri Innovation Hub and India-Oman Innovation Bridge to make the business partnership future-ready.

The Prime Minister emphasised that these were not just ideas, but an invitation to invest, innovate and build the future together.

Modi arrived here on Wednesday on a two-day visit.

India-Oman bilateral trade was about USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25. PTI NKD NKD BAL BAL