India and Oman Strengthen Ties with New Economic and Maritime Agreements

India and Oman formalise new phase of strategic and economic partnership

India and Oman have adopted a Joint Vision Document on Maritime Cooperation and signed a Comprehensive Economic Partnership Agreement (CEPA), marking a significant expansion of bilateral engagement across security, trade, investment and blue economy domains.[1][3][5][10] The outcomes were announced during the visit of the Prime Minister of India to Oman, coinciding with the commemoration of 70 years of diplomatic relations between the two countries.[5][10]

According to official statements, the Joint Vision on maritime collaboration and the CEPA are intended to provide an overarching framework for cooperation in the Indian Ocean region, deepen economic integration, and create long-term predictability for businesses and public agencies in both countries.[1][3][5] The agreements are expected to influence policy coordination in areas ranging from port connectivity and logistics to digital payments, food security and higher education.[1][2][5]

Background to the announcements

The decisions were formalised during bilateral meetings between the Prime Minister of India and His Majesty the Sultan of Oman in Muscat, held in both one-to-one and delegation-level formats.[5] The leadership of both sides reviewed the state of the strategic partnership, noted the steady growth in ties, and agreed to place particular emphasis on maritime, economic and connectivity cooperation.[5][10]

The visit and associated outcomes come at a time when India and Oman are marking seven decades of diplomatic engagement and broadening their cooperation in energy, trade, security and people-to-people relations.[5][10] Oman is described in official communications as a key pillar of India’s West Asia policy and one of its oldest strategic partners in the region.[2]

Government data highlight that bilateral trade has already crossed 10 billion US dollars annually, supported by more than 6,000 India–Oman joint ventures operating in Oman across multiple sectors.[2][5] Against this backdrop, both sides have sought to update the institutional framework for economic and security collaboration to reflect current requirements.[1][2][5]

Comprehensive Economic Partnership Agreement: scope and objectives

The India–Oman CEPA was signed on 18 December 2025 and is described by the Government of India as a landmark development that will give a major boost to the bilateral strategic partnership.[2][5] The agreement is India’s second major free trade accord in a six-month period and is framed as part of a broader effort to expand the country’s network of trade agreements.[2]

According to the list of outcomes released by the Government of India, the CEPA aims to strengthen and further develop closer economic and commercial integration between the two countries.[1] It provides for a reduction of trade barriers and aims to create a stable and predictable framework for trade and investment flows.[1] Official communication notes that the agreement is expected to unlock opportunities in all major sectors of the economy in both countries, enhance economic growth, create jobs and boost investment flows.[1][2][5]

The joint leadership statement underlines that CEPA is intended to significantly promote bilateral trade and investment and open a wide range of opportunities for businesses operating in each market.[5] The accord sits alongside a series of reforms and programmes launched domestically in India to strengthen export capacity, such as the Production Linked Incentive scheme, the National Logistics Policy, Trade Infrastructure for Export Scheme and digital single-window trade platforms.[2]

Key features and economic pillars of CEPA

While detailed schedules of commitments under CEPA are to be implemented through sectoral and customs notifications over time, the Government of India’s outcome document and trade communications point to several core pillars.[1][2][5]

• Reduction of tariffs and non-tariff barriers on a wide range of goods, with the objective of expanding bilateral merchandise trade.[1][2]
• Creation of a more predictable and transparent framework for services trade and investment, benefiting sectors such as logistics, financial services, education, healthcare, and digital technologies.[1][2][5]
• Support for micro, small and medium enterprises (MSMEs), farmers, artisans and workers through easier market access, improved trade facilitation and mechanisms to address regulatory bottlenecks.[2]
• Alignment with India’s ongoing efforts to expand export ecosystems through initiatives like Districts as Export Hubs, trade infrastructure upgrades and logistics optimisation.[2]
• Integration with digital trade and single-window systems, including the National Single Window System, ICEGATE and related platforms that streamline clearances and documentation for traders.[2]

In its broader trade communication, the Government of India notes that export performance has strengthened across major sectors, with merchandise and services exports registering year-on-year growth in November 2025 and contributing to a significant narrowing of the trade deficit.[2] The CEPA with Oman is presented within this context as one element in a wider strategy to diversify markets and secure long-term economic partnerships.[2]

Sectoral cooperation under CEPA and related understandings

Beyond tariff concessions, the leaders discussed and endorsed cooperation in several key sectors that are likely to benefit from the CEPA architecture.[1][2][5]

Energy remains a central pillar of India–Oman cooperation. The joint statement records agreement to give new thrust to energy collaboration, including long-term energy arrangements, renewable energy ventures, and projects in green hydrogen and green ammonia.[5] This aligns with Oman’s own economic diversification plans and India’s energy transition goals.

On manufacturing and logistics, both sides discussed cooperation in areas such as industrial production, critical minerals, logistics infrastructure, and special economic zones, with the intention of enhancing supply chain resilience and creating production platforms that serve regional markets.[2][5]

Food security and agriculture were identified as areas of mutual benefit, including collaboration in agricultural science, animal husbandry, aquaculture and millet cultivation.[1][5] An executive programme for cooperation in millet cultivation and agri-food innovation was also concluded, under which India’s scientific expertise and Oman’s agro-climatic conditions will be utilised to advance millet production, research and promotion.[1][5]

The CEPA framework is expected to facilitate investment flows and joint ventures in these sectors by providing clarity on rules, tariffs, and dispute resolution mechanisms, though specific implementing regulations will be issued by respective authorities over time.[1][2]

Joint Vision Document on Maritime Cooperation

The adoption of the Joint Vision Document on Maritime Cooperation represents a parallel pillar of the India–Oman engagement, focused on security, connectivity and sustainable use of maritime resources.[1][3][6][7] The document reflects a shared commitment to regional maritime security, the blue economy and the sustainable use of ocean resources.[1][3][6][7]

According to the joint statement released at the conclusion of the visit, the maritime vision is intended to guide future cooperation in the Indian Ocean region and adjoining waters, where both India and Oman occupy strategic geographic positions.[3][10] It builds on existing defence and maritime security collaboration, including naval exchanges and coordinated activities.

The document emphasises cooperation in regional maritime security, focusing on enhanced coordination to address challenges such as unlawful activities at sea, protection of sea lanes and support to maritime domain awareness initiatives.[1][3] It also refers to expanded collaboration in the blue economy, including sustainable fisheries, marine tourism, maritime services and related research.[1][3][6][8]

Maritime security and defence cooperation

The two leaders reaffirmed their commitment to further enhancing defence and security collaboration, including in the maritime domain.[5][10] This aligns directly with the Joint Vision, which seeks to strengthen operational coordination and policy-level exchanges between maritime agencies of both countries.[1][3]

Although detailed operational arrangements are handled through defence and maritime channels, the political-level articulation of a shared vision provides a reference for future agreements on joint exercises, capacity building and information sharing.[3][5][10] It also supports India’s wider approach to working with Indian Ocean littoral states on safe and secure seas and Oman’s role as a key maritime partner in the region.

Blue economy and sustainable ocean use

The Joint Vision Document explicitly incorporates commitments on the blue economy and sustainable ocean resource use.[1][3][6][8] The blue economy focus covers sectors such as port-led development, shipping, fisheries, marine tourism, marine biotechnology and offshore renewable energy, with an emphasis on sustainability and environmental responsibility.

Government communications highlight that India is increasingly anchoring external maritime initiatives in its national blue economy vision.[8] In this context, cooperation with Oman could include joint projects in port modernisation, cruise tourism, coastal infrastructure, and knowledge partnerships on marine resource management, subject to sectoral agreements and feasibility assessments.[1][3][8]

Maritime heritage and cultural linkages

Maritime cooperation between India and Oman also extends to historical and cultural dimensions. A dedicated memorandum of understanding has been signed in the field of maritime heritage and museums, aimed at strengthening collaboration between maritime museums, including India’s National Maritime Heritage Complex at Lothal.[1][5]

The MoU provides for exchange of artefacts and expertise, joint exhibitions, research and capacity building, with the objective of promoting shared maritime heritage, boosting tourism and strengthening bilateral cultural ties.[1][5] This dimension complements the strategic and economic aspects of maritime cooperation by documenting and showcasing longstanding seafaring connections between communities on both sides of the Arabian Sea.

Additional agreements signed alongside CEPA and maritime vision

In addition to CEPA and the Joint Vision Document on Maritime Cooperation, several other memoranda of understanding and programmes were concluded during the visit.[1][5]

• Maritime Heritage and Museums MoU, establishing a collaborative partnership to support maritime museums and heritage projects.[1][5]
• Agriculture and allied sectors MoU, serving as a framework umbrella for cooperation in agriculture, animal husbandry and fisheries, including advancements in agricultural science, horticulture, integrated farming and micro-irrigation.[1][5]
• Higher education MoU, facilitating exchange of faculty, researchers and scholars and joint research, particularly in applied areas relevant to socio-economic development goals.[1][5]
• Executive programme on millet cultivation and agri-food innovation, focusing on scientific cooperation and promotion of millets.[1][5]

These instruments collectively expand the institutional infrastructure of the bilateral relationship, enabling line ministries, universities, research institutions and private entities to initiate joint projects under clearly defined frameworks.[1][5]

Financial services and digital payments integration

Beyond trade in goods and traditional services, the leadership discussions also covered financial sector and digital payments cooperation.[5] According to the official readout, the two sides discussed collaboration between India’s Unified Payments Interface (UPI) and the Omani digital payment system, adoption of the RuPay card, and the possibility of conducting trade in local currencies.[5]

Such initiatives are intended to simplify cross-border retail and business transactions, reduce transaction costs and provide more payment options to travellers, expatriate communities and enterprises.[2][5] Integration of payment systems would likely be implemented through agreements between central banks, payment networks and financial regulators, accompanied by necessary regulatory approvals in both jurisdictions.

India has increasingly promoted internationalisation of its digital public infrastructure, including UPI and RuPay, and cooperation with Oman would extend this network further into the Gulf region.[2][5] Operationalisation would enable merchants and service providers in both countries to accept a wider range of payment instruments, contributing to smoother tourism, remittances and e-commerce flows.

Education, skills and people-to-people linkages

Education and human capital development formed another important strand of the visit outcomes. The leaders acknowledged that exchange of faculty and researchers and joint research initiatives would be mutually beneficial and align with both Oman Vision 2040 and India’s development objectives.[1][5][10]

The higher education MoU is designed to facilitate mobility of students and academics, joint degree or research programmes and collaboration in priority fields such as science, technology, engineering, healthcare and social sciences.[1][5] Implementation will depend on follow-up agreements between universities, accreditation bodies and scholarship providers in both countries.

People-to-people ties were also emphasised, with references to language promotion, youth exchanges and sports cooperation.[5] These initiatives are intended to complement the economic and strategic arrangements by deepening societal linkages and fostering long-term familiarity between institutions and communities.

The welfare of the Indian community in Oman was acknowledged, with the Indian leadership thanking the Sultan of Oman for his support to Indian residents.[5] This is relevant administratively given the large expatriate workforce and the potential role of CEPA and new payment arrangements in shaping employment, remittance and service access conditions.

Administrative and implementation implications

The CEPA and Joint Vision Document are framework instruments that will require detailed implementation through domestic regulations, inter-agency coordination and follow-up negotiations on specific sectors. Multiple Indian ministries and departments will be involved in operationalising the commitments.

On the Indian side, key agencies likely to be directly engaged include the Ministry of Commerce and Industry for CEPA implementation, the Ministry of Ports, Shipping and Waterways for maritime cooperation, and the Ministries of External Affairs, Finance, Agriculture, Education and New and Renewable Energy for sectoral follow-up.[1][2][5][8]

Trade-related provisions will be implemented through tariff notifications, customs procedures, rules-of-origin guidelines and sectoral standards frameworks issued by relevant authorities. Export promotion councils, chambers of commerce and state-level trade departments will play a role in disseminating information to businesses and helping them access new opportunities.[1][2]

Maritime cooperation measures, especially on security and blue economy, will involve coordination between the Indian Navy, coast guard, port authorities, maritime universities and research institutions. In India, this will likely intersect with ongoing programmes for port-led development, coastal community support and blue economy initiatives.[3][5][8]

On the Omani side, corresponding ministries and regulatory bodies will undertake similar steps, aligning domestic rules with agreed frameworks. Joint working groups and committees may be set up or strengthened to oversee progress under CEPA, maritime cooperation, agriculture, education and financial services.[1][2][5]

Potential impact on trade, employment and regional cooperation

Government assessments describe the CEPA as an instrument that will significantly promote bilateral trade and investment, create jobs and unlock new opportunities across major sectors.[1][2][5] With current trade already above 10 billion US dollars annually, reductions in tariffs and improved market access could support further growth in merchandise and services exchanges.[2][5]

For Indian exporters, the agreement is expected to provide clearer rules and improved access to the Omani market, particularly in sectors such as engineering goods, food products, textiles, pharmaceuticals, IT services and construction-related services, subject to agreed schedules.[1][2] For Omani businesses, CEPA opens pathways into the Indian market and offers avenues for partnering with Indian firms in manufacturing, logistics, energy and services.

From an employment perspective, official communication notes that trade agreements of this nature are designed to benefit farmers, artisans, workers and MSMEs by creating new demand, supporting value addition and facilitating integration into global value chains.[2] The specific impact on jobs will depend on how quickly industries adapt to the new framework and the extent of investment mobilised in both countries.

The Joint Vision on Maritime Cooperation reinforces regional security and economic connectivity by aligning Indian and Omani approaches to maritime domain awareness, safe sea lanes and blue economy development.[1][3][5] This contributes to a broader pattern of cooperative frameworks in the Indian Ocean region that support secure trade routes, sustainable resource use and coordinated response to maritime risks.

In terms of research, heritage and education, the signed MoUs and programmes provide structured opportunities for institutions to collaborate on shared challenges such as climate-resilient agriculture, marine conservation, heritage preservation and skills development.[1][5] These activities are expected to generate knowledge, build capacity, and support evidence-based policymaking in both countries.

Alignment with long-term national visions

The joint statement notes that both sides welcomed the alignment between Oman Vision 2040 and India’s goal of becoming a developed nation by 2047, often referred to as Viksit Bharat.[5][10] The new agreements are framed as instruments that can support these long-term national objectives by driving growth, diversification, innovation and connectivity.

For India, deepening economic ties with the Gulf region through CEPA and related partnerships fits within a broader strategy of securing energy supplies, expanding export markets and integrating domestic manufacturing with global value chains.[2][5] For Oman, engagement with a large and growing economy such as India supports diversification away from a narrow commodity base and enhances its role as a regional logistics and services hub.

By linking trade liberalisation, maritime security, blue economy cooperation, heritage preservation, agriculture, education and digital payments within a coherent set of arrangements, the India–Oman partnership is being given a more structured and forward-looking character.[1][2][3][5][10] The next phase will depend on the pace and rigour of implementation, as well as the responsiveness of public institutions and private stakeholders to the newly created frameworks.