Muscat – Prime Minister Narendra Modi on Thursday led celebrations for 70 years of diplomatic ties between India and Oman during his two-day visit to Muscat. He warmly addressed the large Indian community and oversaw the signing of a major trade deal that opens duty-free access for most Indian goods to Oman.
Arrival and Warm Welcome in Muscat
Prime Minister Modi reached Muscat on Wednesday evening, the last stop of his three-nation tour after Jordan and Ethiopia. Oman’s Deputy Prime Minister for Defence Affairs, Sayyid Shihab bin Tariq Al Said, welcomed him at the airport with a guard of honour.
Soon after landing, Modi posted on X: “Landed in Muscat, Oman. This is a land of enduring friendship and deep historical connections with India. This visit offers an opportunity to explore new avenues of collaboration and add fresh momentum to our partnership.”
Hundreds from the Indian community gathered at his hotel, waving flags and chanting slogans to greet him.
There are about 700,000 to 800,000 Indians living in Oman, many working in different fields and sending money back home.
Historic Signing of Comprehensive Economic Partnership Agreement (CEPA)
On Thursday, India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) at Al Baraka Palace in the presence of PM Modi and Sultan Haitham bin Tarik.
India’s Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef, put their signatures on the deal.
This is India’s second such agreement with a Gulf country after the one with UAE in 2022. For Oman, it is the first major trade pact in almost 20 years.
The CEPA gives zero-duty access to over 98% of Indian exports to Oman, covering almost all goods by value. Key sectors like textiles, gems and jewellery, automobiles, pharmaceuticals, and food items will benefit a lot.
Bilateral trade between the two countries stood at around $10.5 billion in 2024-25, with India exporting about $4 billion and importing $6.5 billion, mostly petroleum and urea.
Experts say the deal could double trade in a few years by removing tariffs and making rules easier.
Speaking at the India-Oman Business Forum, PM Modi said: “Today, we are taking such a historic decision, the echo of which will be heard for many decades to come. Comprehensive Economic Partnership Agreement, that is, CEPA, will give our partnership new confidence and new energy in the 21st century.”
He added that India is growing fast to become the third-largest economy and when India grows, it helps friends like Oman grow too.
Modi invited Omani companies to invest in India’s growth story, highlighting reforms like GST and insolvency laws that have made business easier.
Focus on New Areas of Cooperation
During talks with Sultan Haitham bin Tarik, both leaders discussed ways to work together in green energy, artificial intelligence, fintech, supply chains, defence, and space.
Oman’s strategic Duqm port is important for India’s naval and energy security needs. India has access to facilities there for logistics support.
The leaders also reviewed progress in defence ties and people-to-people contacts.
Sultan Haitham bin Tarik conferred the Order of Oman, the country’s highest civilian honour, on PM Modi for his role in strengthening bilateral relations.
Address to Indian Community: A Living Bridge of Friendship
In the evening, PM Modi addressed a large gathering of Indians and students in Muscat. He praised them for blending into Omani society while keeping Indian values alive.
“The Indian diaspora here has become a living example of co-existence and co-operation,” Modi said.
He spoke about old ties: “India and Oman have always shared intimate and living ties. The Indian Ocean’s monsoon winds have given direction to the trade between the two countries. Our ancestors used to take wooden boats from ports like Lothal, Mandvi and arrive in Muscat, Sur and Salalah.”
Modi highlighted India’s progress in digital payments, mobile manufacturing, and space, inviting Omani students to ISRO programmes.
The crowd responded with loud cheers, showing strong people-to-people bonds.
Long History of Friendship
India and Oman set up diplomatic relations in 1955, but ties go back thousands of years through trade in spices, dates, and pearls.
Many Indians have lived in Oman for generations. The late Sultan Qaboos bin Said had close links with India, and current Sultan Haitham bin Tarik visited India in 2023.
Defence cooperation includes joint exercises, training, and India’s access to Duqm port.
Energy ties are strong, with Oman supplying LNG and petroleum to India.
This visit, coinciding with the 70th anniversary, has taken the partnership to new heights with the CEPA and fresh commitments in emerging areas.
As PM Modi wraps up his tour, the strengthened ties promise more jobs, trade, and cooperation for both nations in the coming years.
Frequently Asked Questions (FAQs)
1. What is the main outcome of PM Modi’s visit to Oman?
The key outcome is the signing of the Comprehensive Economic Partnership Agreement (CEPA), a free trade deal that removes duties on most Indian exports to Oman. It will boost trade, investment, and cooperation in new areas like green energy and technology.
2. Why is the CEPA important for India?
It gives duty-free access to over 98% of Indian goods in Oman, helping sectors like textiles, jewellery, cars, and medicines. Trade could grow much faster from the current $10-12 billion level. It also opens doors for Indian professionals and services.
3. How many Indians live in Oman, and what did Modi say about them?
Around 700,000-800,000 Indians live in Oman. Modi called them a living bridge of friendship, praising how they follow Indian values while fitting well into Omani society.
4. What is the significance of 70 years of diplomatic ties?
India and Oman marked 70 years since formal relations began in 1955. But ties are much older due to sea trade. The visit celebrated this history and set new goals for the future.
5. What is Duqm port’s role in India-Oman ties?
Duqm is a modern port in Oman where India has access for naval ships and logistics. It helps India’s energy security and trade routes in the region.
6. Did Modi receive any award during the visit?
Yes, Sultan Haitham bin Tarik gave PM Modi the Order of Oman, the highest civilian honour, for his efforts in building stronger ties.
7. What new areas of cooperation were discussed?
Leaders talked about green energy, AI, fintech, supply chains, space, defence, and health. India invited Omani students to space programmes.