NEW DELHI: India and Oman are close to finalizing a Comprehensive Economic Partnership Agreement (CEPA), with only a few key issues left to resolve. The pact aims to boost bilateral trade and investment between the two countries.

The main point of discussion remains Oman's "Omanisation" policy, which requires private companies to employ a certain percentage of Omani nationals. India is seeking to maintain the current employment quotas for Indian workers to avoid future restrictions that could impact expatriates. These quotas vary by sector and range between 15% and 30%.

Market access for petrochemical products is also being negotiated, as both sides work to balance their trade interests.

Once signed, the agreement will liberalize trade on nearly 98% of Indian imports, covering key sectors such as pharmaceuticals, textiles, engineering goods, and IT services. The CEPA will provide India with strategic access to important shipping routes and regional Gulf Cooperation Council (GCC) markets.

Oman is currently India's third-largest export market in the GCC, with bilateral trade valued at approximately $8.9 billion in 2024. The agreement is expected to reverse recent declines in trade volumes and strengthen economic ties.

The negotiations have gained momentum after India's Commerce and Industry Minister Piyush Goyal visited Muscat in January 2025. Formal talks began in November 2023, and both countries are optimistic about concluding the deal soon.

This pact is poised to enhance trade, investment, and diplomatic relations between India and Oman.