India and Oman are set to sign the Comprehensive Economic Partnership Agreement (CEPA) "very soon" with both nations eyeing diversification of their trade basket to include more commodities and exchange of services, the country's Ambassador to India Issa Saleh Abdullah Saleh Alshibani said.

In an interview to PTI, Oman's Ambassador to India said negotiations have concluded and currently the legislative and administrative processes are in motion.

"Hopefully... we will reach a stage of signature very soon," he said in response to a question related to the expected timeline for signing of the agreement.

Talks for the agreement, officially termed as CEPA, formally began in November 2023.

In such agreements, two trading partners significantly reduce or eliminate customs duties on a maximum number of goods traded between them.

They also ease norms to promote trade in services and attract investments.

On the impact in terms of bilateral trade after signing of the CEPA, the Oman Ambassador to India said, "We have seen the effect of different CEPA agreements signed by India with other countries." The proposed agreement would simplify and increase the scope of trade beyond energy, into other commodities, Mr. Alshibani said.

India's key imports from Oman are petroleum products and urea. These account for over 70% of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, and iron and steel.

"So the main export (from Oman to India) where the trade balance really makes a difference, it depends on oil prices and petrochemical prices. I think this is where the serious thinking about the CEPA agreement came out, this business relationship should be expanded to other commodities, where we see other commodities and services exchange between the two," Oman's Ambassador to India told PTI.

Oman is the third-largest export destination for India among the Gulf Cooperation Council (GCC) countries. India already has a similar agreement with another GCC member, the UAE, since May 2022.

During 2024-25, bilateral trade between India and Oman stood at $10.61 billion.

There are over 6,000 India-Oman joint ventures in Oman with estimated investment of over $776 million.

Indian companies have emerged as leading investors in Oman, particularly at Sohar and Salalah Free Zones. The cumulative FDI equity inflow from Oman to India between April 2000 and March 2025 is $605.57 million.

India, Oman to sign CEPA trade pact very soon: Oman's Ambassador to India