The economic relationship between Oman and India has reached a new milestone, with recent high-level discussions focused on accelerating growth and deepening collaboration. A pivotal meeting between Qais bin Mohammed Al Yousef, Oman’s Minister of Commerce, Industry and Investment Promotion, and Piyush Goyal, India’s Minister of Commerce and Industry, underscored the commitment of both nations to fostering a robust Oman-India economic partnership. This comes on the heels of significant progress in bilateral trade and investment, setting the stage for a future defined by strategic alignment and mutual prosperity.
Boosting Economic Cooperation: A New Era for Oman and India
The meeting, held on the sidelines of the Oman-India Business Dialogue, centered on elevating economic and commercial cooperation to an advanced level. Both ministers emphasized the strategic importance of transitioning beyond traditional trade to encompass high-value investments and collaborative projects across diverse sectors. A key element of this advancement is leveraging the strengths of Oman’s investment environment, particularly the attractive incentives and integrated services available within the Sultanate’s specialized economic zones, to encourage greater Indian participation.
Competitive Investment Landscape in Oman
Oman is actively positioning itself as a premier investment destination and the discussions highlighted how the country’s strategic location and developing infrastructure facilitate this goal. The government is dedicated to streamlining processes and offering compelling benefits to foreign investors, and the ongoing development of special economic zones plays a crucial role in attracting capital and expertise. This commitment aligns perfectly with Oman’s broader national objectives of economic diversification, reducing reliance on oil, and expanding its global footprint.
CEPA Implementation: A Cornerstone of Enhanced Trade
A major accomplishment celebrated during the meeting was the finalization of the Oman-India Comprehensive Economic Partnership Agreement (CEPA). This agreement is expected to significantly reduce trade barriers and boost economic activity between the two countries. Both sides agreed on the critical importance of a smooth and effective implementation, establishing a clear mechanism with defined timelines to ensure the CEPA is fully ratified and operationalized.
The role of the Oman-India Joint Committee was particularly highlighted. This committee will be instrumental in monitoring the agreement’s progress post-signature, addressing any challenges, and maximizing the benefits for both economies.
Joint Committee’s Progress and Future Focus
The ministers reviewed the work completed by the Joint Committee since its eleventh session, which took place a year ago. Preparations are now well underway for the twelfth session, scheduled to be held in India. This upcoming session will place a strong emphasis on securing tangible and measurable outcomes resulting from the CEPA framework and associated investment initiatives. The aim is to translate the agreement’s potential into concrete gains for businesses and consumers in both Oman and India.
Strong Trade Figures Demonstrate Growing Bilateral Ties
The discussions were informed by consistently strong trade figures, illustrating the increasing dynamism of the Oman-India economic partnership. Bilateral trade reached approximately OMR 1.049 billion in the first half of 2025, confirming India’s position as Oman’s third-largest trading partner as of June 2025. This impressive figure represents a cumulative trade growth of 63% from 2020 to 2024, translating to an average annual growth rate of around 13%.
Moreover, India is becoming a significant source of foreign direct investment (FDI) into Oman. By the end of the second quarter of 2025, India’s total FDI inflow into Oman reached OMR 268.4 million, ranking it as the tenth-largest source of FDI. This increased investor confidence is also reflected in the number of registered companies with Indian shareholding, which stood at 10,589 as of September 2025.
Focus on Industrial and Productive Investments
Both Oman and India share a common ambition to substantially expand industrial and productive investments. This includes exploring opportunities in sectors such as renewable energy, petrochemicals, and manufacturing, aligning with both nations’ long-term economic diversification goals. The meeting concluded with a renewed determination to build upon the existing momentum and foster even closer collaboration in the years to come.
Conclusion: A Bright Future for Oman-India Relations
The recent high-level meeting between Oman and India signifies a deepening commitment to a mutually beneficial Oman-India economic partnership. With the CEPA poised for implementation and a clear roadmap for future collaboration, the stage is set for substantial growth in trade and investment. The focus on strategic partnerships, attractive investment incentives, and collaborative projects across key industries like renewable energy and manufacturing is likely to fuel this expansion. This positive trajectory underscores the enduring strength and promising future of the relationship between Oman and India – a relationship that will continue to be monitored and driven forward by the committed efforts of the Oman-India Joint Committee. Businesses interested in exploring opportunities within this blossoming trade corridor are encouraged to learn more about the incentives and support offered by both governments.
