New Delhi, Dec 12 (IANS) The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the proposed Free Trade Agreement (FTA) between India and Oman, aimed at deepening trade and investment relations between the two countries. The approval comes ahead of Prime Minister Modi's upcoming three-nation visit to Jordan, Ethiopia, and Oman from December 15-18, which is expected to open up far-reaching opportunities to enhance the country’s economic footprint across West Asia and Africa.

PM Modi, during his last leg of the tour, will visit Oman from December 17-18, for the second time, at the invitation of His Majesty Sultan Haitham bin Tarik. The visit marks the 70th anniversary of diplomatic relations between the two countries. India and Oman share a long-standing and multidimensional Strategic Partnership supported by strong trade ties, energy cooperation and cultural linkages. This approval also comes a day after Oman's Shura Council approved the Gulf nation’s proposed FTA with India. The talks for the trade agreement, officially termed the CEPA (Comprehensive Economic Partnership Agreement), formally began in November 2023.

The economic and commercial relations between India and Oman are robust and buoyant. Bilateral trade during FY 2023-2024 reached US$ 8.947 billion, and for the FY 2024-25 reached 10.613 US$ billion, according to an official statement. Bilateral investment flows have also been strong, as reflected in numerous joint ventures established both in India and Oman. There are over 6,000 India-Oman joint ventures present in Oman, estimated to adding $7.5 billion to Oman’s economy in form of the total capital investment over a long period, encompassing not just formal outward direct investment of $675 million, but also the total value of all capital committed to JVs in different sectors and the third country investments made into Oman by Indian investors. The cumulative FDI equity inflow from Oman to India during April 2000 to March 2025 is $605.57 million.

The Sultanate of Oman is a strategic partner of India and an important interlocutor at the Gulf Cooperation Council (GCC), the Arab League, and the Indian Ocean Rim Association (IORA) fora. India and Oman are linked by geography, history, and culture and enjoy warm and cordial relations. While people-to-people contact between India and Oman can be traced back 5000 years, diplomatic relations were established in 1955, and the relationship was upgraded to a Strategic Partnership in 2008.