India-Oman Relations / PM Modi Concludes Historic 3-Nation Tour, Departs Oman After Landmark FTA

Prime Minister Narendra Modi concluded a significant four-day, three-nation tour, departing from Oman after signing a historic Free Trade Agreement. Oman's Deputy PM Syed Shihab bin Tariq Al Said bid him farewell with a 'Namaste' at the airport. The visit strengthened strategic ties and opened new economic avenues for both nations.

Prime Minister Narendra Modi has successfully concluded his impactful four-day, three-nation tour, departing from Oman for India on Thursday. This extensive diplomatic engagement marked a significant stride in bolstering bilateral relations between India and Oman, as well as fostering broader regional cooperation. A notable highlight of his departure was the presence of Oman's Deputy Prime Minister for Defence Affairs, Syed Shihab bin Tariq Al Said, who personally escorted PM Modi to the Muscat airport, while in a gesture of profound respect and cultural affinity, the Deputy PM bid farewell with a traditional Indian 'Namaste', underscoring the deep-rooted cultural and diplomatic ties shared by the two nations.

A Grand Farewell from Oman Reflecting Deep Ties

The scene at Muscat airport, with Oman's Deputy Prime Minister personally seeing off Prime Minister Modi, was a powerful testament to the growing warmth and mutual respect between India and Oman, while the gesture of 'Namaste' by Syed Shihab bin Tariq Al Said went beyond mere diplomatic protocol, symbolizing a personal touch and a strong bond of friendship. This heartfelt farewell underscored the success of the Prime Minister's visit and the personal rapport developed between the leaders of both countries. It highlighted Oman's high regard for its relationship with India, setting a positive tone for future engagements and collaborations. Upon his arrival in Oman on Wednesday, Prime Minister Modi engaged in comprehensive discussions with Sultan Haitham bin Tariq. The core objective of these high-level talks was to explore avenues for further strengthening the bilateral strategic partnership between India and Oman. Both leaders deliberated on enhancing cooperation across various sectors, including trade, investment, energy security, defense, and cultural exchanges. These discussions laid a strong foundation for future collaboration, aiming to contribute to regional stability and prosperity. The strategic dialogue emphasized a shared vision for a secure and prosperous future for both nations and the wider region.

Key Discussions and Strengthening Strategic Partnership

Historic Free Trade Agreement (FTA) Signed

A pivotal outcome of Prime Minister Modi's visit to Oman was the signing of a historic Free Trade Agreement (FTA), also referred to as the Comprehensive Economic Partnership Agreement (CEPA). This landmark agreement is poised to elevate trade and economic relations between the two countries to unprecedented levels. The CEPA will grant duty-free access to Oman for 98 percent of India's exports, encompassing crucial sectors such as textiles, agricultural products, and leather goods. This provision will unlock substantial opportunities for Indian exporters, making them more competitive in the Omani market and fostering greater trade volumes.

Mutual Economic Benefits for Both Nations

The benefits of this agreement are reciprocal, extending significant economic advantages to Oman as well. India, in turn, will reduce tariffs on key Omani products, including dates, marble, and petrochemical items, thereby facilitating easier access for these goods into the vast Indian market. This reciprocal tariff reduction is expected to stimulate bilateral trade flows and diversify the economic engagement between the two countries. The agreement is anticipated to be implemented in the first quarter of the next calendar year, promising a swift realization of its positive impacts on both economies.

PM Modi Hails the Agreement as Historic

Prime Minister Modi, in a post on X, emphasized the profound significance of this agreement. He stated, “Today, we're taking a historic step forward in India-Oman relations, the positive impact of which will be felt for decades to come, while the Comprehensive Economic Partnership Agreement (CEPA) will infuse new energy into our relations in the 21st century. It will give new momentum to trade, investment, and open new opportunities across various sectors, while ” He further added that the signing of CEPA was a key outcome that would benefit the youth of both countries, and considerable progress had also been made in other future-oriented areas, ensuring that the India-Oman friendship continues to strengthen in the times to come.

Oman's Highest Civilian Honor Bestowed

During his visit, Prime Minister Modi was conferred with the ‘Order of Oman’, the Sultanate’s highest civilian honor, by Sultan Haitham bin Tariq, while this prestigious award recognized Prime Minister Modi's invaluable contributions to strengthening bilateral relations between India and Oman. The conferment of such a high honor symbolizes the deep friendship and respect Oman holds for India's leadership and its commitment to fostering strong ties. It further underscores the strong and growing relationship built on shared interests and mutual understanding.

Regional Significance and Strategic Partnership

This agreement comes at a crucial juncture, particularly as India faces stringent 50 percent tariffs in one of its largest export destinations, the United States. In this context, an FTA with a strategic partner like Oman holds immense importance for India. Oman isn't only a vital strategic partner but also serves as a crucial gateway for Indian goods and services to the wider region, extending to Africa. This agreement is expected to help India expand its reach into the Middle Eastern and African markets, providing a significant boost to the Indian economy and diversifying its trade portfolio away from over-reliance on single markets.

Four-Day, Three-Nation Diplomatic Blitz

Prime Minister Modi's four-day itinerary encompassed visits to three nations, with Oman being the final leg, following engagements in Jordan and Ethiopia, while randhir Jaiswal, spokesperson for the Ministry of External Affairs, described the tour as “heart-warming and bond-strengthening. ” He posted on X, “After important discussions and the achievement of key outcomes, PM @narendramodi is departing for India after a busy four-day visit to Jordan, Ethiopia, and Oman. ” This multi-nation tour was a vital component of India's 'Act East' and 'Connect West' policies, aimed at enhancing India's global presence and influence across diverse regions.

Gratitude and Future Outlook

Before his departure, Prime Minister Modi expressed his profound gratitude to “His Majesty Sultan Haitham bin Tariq, the Government and people of Oman for their affection during this visit. ” He conveyed his optimism that the India-Oman friendship would continue to strengthen in the coming years. This visit not only succeeded in fortifying diplomatic and economic ties but also deepened the cultural and personal connections between the peoples of both nations, laying a strong foundation for greater cooperation and understanding in the future. The positive outcomes and mutual goodwill generated during this tour promise a vibrant and collaborative future for India-Oman relations.