Muscat: India and Oman signed a free trade agreement on Thursday as Prime Minister Narendra Modi held discussions with Sultan Haitham bin Tarik to deepen the bilateral Strategic Partnership.

Modi, wrapping up his three-nation tour after arriving in Oman on Wednesday, received a warm welcome from Sultan Haitham at Al Baraka Palace in Muscat ahead of the bilateral talks.

The leaders reviewed avenues to infuse greater substance into the India-Oman Strategic Partnership, Ministry of External Affairs Spokesperson Randhir Jaiswal said.

"Both leaders exchanged views on a broad range of topics, including defence, security, trade & investment, energy, agriculture, technology, new and emerging areas, culture and people-to-people ties, among others. They also discussed issues of regional and global interest," Jaiswal noted.

They hailed the 70th anniversary of diplomatic relations as a pivotal moment in bilateral ties.

The two leaders celebrated the inking of the Comprehensive Economic Partnership Agreement (CEPA) as a landmark, stating it would markedly fortify the India-Oman strategic partnership.

Commerce and Industry Minister Piyush Goyal and Oman's Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef signed the CEPA, which aims to widen market access, spur investments, and deepen collaboration in critical sectors.

It will aid trade diversification and supply chain robustness amid shifting global economics.

This marks Oman's second FTA with a single nation and its first in roughly two decades.

Earlier, PM Modi remarked that the India-Oman CEPA would inject fresh momentum into relations.

Jaiswal described the FTA signing as a "new chapter" in the strategic partnership, a key milestone in economic relations.

He projected the pact would expand India-Oman trade, attract investments, drive economic diversity, open doors across major sectors, fuel growth, and create jobs.

"For people, CEPA means more jobs, better market access for businesses, stronger supply chains and greater economic opportunities on both sides," he added.

India has forged several FTAs in recent years—UK (2025), EFTA (2024), Australia (2022), UAE (2022), Mauritius (2021)—yielding gains for farmers, traders, and exporters.

This growing web underscores India's proactive trade policy, emphasising diversification, resilience, and win-win expansion, sources indicated.

Modi is in Oman on Sultan Haitham's invitation, his second trip there, coinciding with 70 years of diplomatic links.

The Prime Minister reached Muscat, concluding visits to Ethiopia and Jordan.

Oman ranks as India's third-largest export market among Gulf Cooperation Council (GCC) nations. India shares a comparable pact with GCC peer UAE, effective May 2022.

India-Oman trade hit about USD 10.5 billion in 2024-25 (exports USD 4 billion, imports USD 6.54 billion). Key imports: petroleum products, urea (over 70%); others include propylene, ethylene polymers, pet coke, gypsum, chemicals, iron, steel, and unwrought aluminium.

Prime exports to Oman: mineral fuels, chemicals, precious metals, iron, steel, cereals, ships, boats, floating structures, electrical machinery, boilers, tea, coffee, spices, apparel, food items.

With inputs from PTI