India, Oman Usher in New Era of Trade Ties

New Delhi:India and Oman on Thursday signed a total of six agreements, including the comprehensive economic partnership agreement (CEPA) that will help increase trade between the two countries by reducing trade barriers and creating a stable framework. The agreements were signed following delegation-level talks between Prime Minister Narendra Modi and Sultan Haitham bin Tarik, the ruler of Oman, in Muscat.

The Prime Minister, who arrived in Oman on Wednesday on the last leg of his three-nation tour, was welcomed by the Oman Sultan at Al Baraka Palace in Muscat before their one-on-one talks and the delegation-level meeting. The Sultan also conferred upon Mr Modi the Order of Oman, the Sultanate's uniquely distinct civilian honour, for his exceptional contribution to India-Oman ties.

"Today, we are taking a historic step forward in India-Oman relations, whose positive impact will be felt for decades to come. The comprehensive CEPA will energise our ties in the 21st century," Mr Modi said, describing the pact as "a new and golden chapter" of bilateral cooperation. He said the agreement will give new momentum to trade and investment, and open new opportunities across different sectors.

During the meeting, the two leaders expressed satisfaction at the excellent state of bilateral relations, spanning trade, investment, defence, security, technology, education, energy, space, agriculture, culture and people-to-people ties.

"The two sides commended the deepening cooperation in the defence sector and agreed to continue working together in this regard, including joint exercises, training, and high-level visits to achieve shared goals and contribute towards maintaining regional security and stability," said a joint statement issued after their talks.

"They adopted a joint vision document on maritime cooperation, reflecting their shared commitment to regional maritime security, the blue economy, and sustainable use of ocean resources,"the statement said, adding, "The two leaders condemned terrorism in all its forms and manifestations, reaffirming that no justification can ever be accepted for such acts. They underlined the importance of continued cooperation in this area"

On financial services, the two leaders discussed cooperation between UPI and the Omani digital payment system, RUPAY card adoption and trade in local currencies. The Prime Minister suggests collaborating on fertiliser and agriculture through joint investment. Enhancing defence and security collaboration, including in the maritime domain, was also discussed. The Prime Minister thanked the Sultan for his support towards the welfare of the Indian community in Oman.

Earlier, the Prime Minister addressed a large gathering of Indian community members in Muscat. The audience included more than 700 students from various Indian schools.

During his address, Mr Modi spoke about India’s transformational growth and development, the speed and scale of change, and the strength of its economy as reflected by the more than 8 per cent growth in the last quarter.

Addressing the business forum, the Prime Minister highlighted the centuries-old maritime trading ties between the two countries, from Mandvi to Muscat. He called upon the business leaders to realise the full potential of CEPA, which he described as the blueprint for the shared future of India and Oman.

The Prime Minister also highlighted India’s economic success in the last 11 years and underlined that India is working at speed and scale to create world-class infrastructure, logistics, connectivity, trusted supply chains, manufacturing capacities and green growth to boost "ease of living” and "ease of doing business”.

Mr Modi invited Omani businesses to look beyond traditional areas of energy, oil and gas, petrochemicals and fertilisers, and explore opportunities in the fields of green energy, solar parks, energy storage, smart grids, agri-tech, fintech, AI and cyber security. He proposed the creation of the India-Oman Agri Innovation Hub and the India-Oman Innovation Bridge to make the business partnership future-ready.

Later in the evening, Mr Modi returned to India after completing his three-nation tour.