Prime Minister Narendra Modi on Thursday highlighted the resilience and momentum of the Indian economy, stating that India has sustained growth of over 8% despite global uncertainties, as he addressed the India–Oman Business Forum in Muscat ahead of the signing of a landmark trade agreement between the two countries.
Speaking to business leaders and policymakers, Mr. Modi said India continues to be the world’s fastest-growing major economy and is firmly on track to become the third-largest economy in the coming years. He underscored that India’s growth story is not inward-looking but one that creates opportunities for its global partners as well.
“A few days ago, the latest economic growth figures were released, and India’s growth stood at over 8%. This shows the strength and stability of India’s economy even at a time when the global environment remains challenging,” the Prime Minister said.
CEPA to Strengthen Economic Partnership
At the centre of the visit is the India–Oman Comprehensive Economic Partnership Agreement (CEPA), which both countries are set to sign during Mr. Modi’s visit. The agreement is expected to significantly deepen trade and investment ties by reducing tariffs, removing non-tariff barriers, and facilitating smoother market access for businesses on both sides.
“The India–Oman CEPA will give our partnership new confidence and new energy for the 21st century,” Mr. Modi said, adding that over the past 11 years, India has not merely reformed individual policies but has fundamentally transformed its economic framework.
“India has not just changed its policies; it has changed its economic DNA,” he said.
India–Oman Ties Rooted in Trust
The Prime Minister stressed that India and Oman share a long-standing relationship built on trust, maritime connectivity, and generations of commercial engagement. He described Oman as a natural economic partner, noting that both nations understand each other’s markets well due to decades of trade and people-to-people ties.
“This is beneficial for the entire world, but it is even more beneficial for Oman. Beyond being close friends, we are also maritime neighbours,” Mr. Modi said, pointing to Oman’s strategic location as a gateway to the Gulf, Africa, and West Asia.
He also interacted with business leaders from both countries, encouraging deeper collaboration across sectors such as manufacturing, logistics, renewable energy, technology, food processing, and infrastructure.
India’s Growth Creates Shared Opportunities
Highlighting India’s broader economic trajectory, the Prime Minister said India’s development model is inherently progressive and inclusive.
“Whenever India grows, it helps its friends grow as well. Today, India is progressing towards becoming the world’s third-largest economy,” he said, adding that global partnerships play a key role in sustaining that momentum.
The India–Oman CEPA is expected to boost bilateral trade beyond the $10 billion mark by offering duty-free or preferential access to a wide range of goods and services, while also encouraging investments and joint ventures.
Piyush Goyal Calls CEPA a Turning Point
Union Commerce and Industry Minister Piyush Goyal, who also addressed the business summit, said India and Oman were on the cusp of a transformative phase in their economic relationship.
“Our bilateral trade has already crossed $10 billion, but this is only the beginning,” Mr. Goyal said. “We must now focus on building a diversified, future-ready trade partnership.”
According to Mr. Goyal, the CEPA would create new opportunities by lowering trade barriers and enabling greater integration of supply chains.
He invited Omani businesses to explore India’s expanding domestic market while positioning Oman as a strategic hub for Indian companies looking to access the Gulf, African, and West Asian regions.
Strategic Importance of the Agreement
Mr. Goyal also underlined the broader geopolitical and economic significance of the pact, noting that this would be Oman’s second free trade agreement with an individual country in nearly two decades.
“This demonstrates the importance Oman places on its relationship with India and India’s commitment to strengthening economic engagement in the Gulf region,” he said, expressing confidence that the agreement would mark a new chapter in bilateral relations.
Part of India’s Expanding Trade Network
The India–Oman CEPA adds to India’s growing network of trade agreements in recent years. New Delhi has signed multiple FTAs and economic partnership agreements aimed at supporting exporters, farmers, and manufacturers.
These include the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom, the CEPA with the United Arab Emirates in 2022, the Economic Cooperation and Trade Agreement with Australia, and an Africa-focused trade pact with Mauritius in 2021. India also concluded a trade and economic partnership with the European Free Trade Association in 2024.
Bilateral trade between India and Oman stood at $8.947 billion in FY 2023–24 and rose to $10.613 billion in FY 2024–25, according to official data.
As India looks to strengthen its economic footprint across the Gulf, the India–Oman CEPA is expected to serve as a key pillar of New Delhi’s broader trade and investment strategy in the region.
