India Forges Stronger Economic Bonds with Oman, Registers Impressive Telecom Export Growth
India solidified its economic footprint in the Gulf region by signing a Comprehensive Economic Partnership Agreement (CEPA) with Oman on December 18, 2025. This agreement, a significant milestone for both nations, is Oman's first free trade pact in nearly two decades and India's sixth major FTA in recent times.
Key Aspects of the India-Oman CEPA
The CEPA aims to boost bilateral trade and deepen economic collaboration, with Prime Minister Narendra Modi emphasizing its role in infusing new energy into trade and investment ties. The agreement grants duty-free access for approximately 98% of India's exports to Oman, covering nearly 99% of the total value. Beyond tariff reductions on goods, the pact also encompasses services, investment facilitation, and enhanced mobility for professionals. Sectors poised to benefit include engineering goods, textiles, pharmaceuticals, agricultural products, IT, professional services, education, healthcare, and research.
India's Robust Economic Performance
During his visit to Muscat, Prime Minister Modi underscored India's resilient economic performance, reiterating that the country remains the fastest-growing major economy globally, with a growth rate exceeding 8% despite prevailing global economic challenges. India's GDP has now become the world's fourth-largest.
Remarkable Growth in Telecom Exports
In a significant boost to its manufacturing and export capabilities, India's telecom exports witnessed a substantial 72% increase, rising from US$1.10 billion to US$2.03 billion. This growth reflects the growing competitiveness of India's telecommunications sector, driven by increased domestic production and improved economies of scale.
Addressing Trade Challenges and Rupee Dynamics
India is actively pursuing free trade agreements to offset the impact of steep US import tariffs, which rose to 50% in August 2025 and have affected sectors like textiles and auto components. Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal expressed no concerns regarding the recent weakness of the Indian Rupee, suggesting it is not indicative of economic worry and aligning with historical trends of exchange rate weaknesses during high growth phases in other major economies like China and Japan.
Corporate Developments
In other business news, HCL Technologies announced the acquisition of Hewlett Packard Enterprise's Telco Solutions Business for up to USD 160 million. Bharti Airtel and Singtel mutually agreed to amend their shareholders' agreement, with Singtel relinquishing key reserved rights. Additionally, GPT Infraprojects' joint venture secured a significant contract worth Rs 1,804.48 crore from the Municipal Corporation of Greater Mumbai (MCGM). Vodafone Idea successfully raised Rs 3,300 crore through a Non-Convertible Debenture (NCD) issue to support its operations. Reliance Industries is expanding its Fast-Moving Consumer Goods (FMCG) presence with a majority acquisition of Udhaiyams.