Muscat, Dec 17 (PTI) Prime Minister Narendra Modi on Wednesday arrived in Oman on a two-day visit during which he will hold talks with the country's top leadership and is expected to sign an ambitious trade deal.

He was warmly welcomed by Oman's Deputy Prime Minister for Defence Affairs Sayyid Shihab bin Tariq Al Said at the airport, where a guard of honour was accorded to the prime minister.

Modi is visiting Oman at the invitation of Sultan Haitham bin Tarik.

This is his second visit to the Gulf nation and marks 70 years of the establishment of diplomatic relations between the two countries.

India has said that it is "very optimistic" about finalising an ambitious trade deal with Oman during the visit.

The free trade agreement between India and Oman was approved by the Union Cabinet last Friday.

Talks for the agreement, officially termed as CEPA (Comprehensive Economic Partnership Agreement), formally began in November 2023, and the negotiations concluded this year.

"We are all very optimistic about it. The teams from both sides have been working very hard for its early finalisation," Arun Chatterjee, a secretary in the Ministry of External Affairs (MEA), had said at a media briefing when asked whether the proposed India-Oman comprehensive economic partnership agreement will be inked during Modi's visit.

"We have immense faith that this agreement, if signed during this visit, will significantly deepen the economic ties between India and Oman. And it will open up a new chapter in the history of India-Oman trade and commercial relationship," he said.

During the visit, Modi will also hold discussions with Sultan Tarik on strengthening the Strategic Partnership as well as a strong commercial and economic relationship.

Modi is also scheduled to address a gathering of the Indian diaspora here.

"This visit will be an opportunity for both sides to comprehensively review the bilateral partnership, including in the areas of trade, investment, energy, defence, security, technology, agriculture and culture, as well as exchange views on regional and global issues of mutual interest," the MEA said in an earlier statement.

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, which came into effect in May 2022.

India-Oman bilateral trade was about USD 10.5 billion (exports USD 4 billion and imports USD 6.54 billion) in 2024-25. India's key imports are petroleum products and urea. These account for over 70 per cent of imports. Other key products are propylene and ethylene polymers, pet coke, gypsum, chemicals, iron and steel, and unwrought aluminium.

The main items of India's exports to Oman include mineral fuels, chemicals, precious metals, iron and steel, cereals, ships, boats and floating structures, electrical machinery, boilers, tea, coffee, spices, apparel, and food items. PTI GRS ZH ZH

India-Oman Comprehensive Economic Partnership Agreement expected to be signed during Modi's visit, deepening bilateral trade ties. The Prime Minister's visit is intended to finalise and potentially sign the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman, negotiated since November 2023 and approved by the Union Cabinet, with officials expressing optimism that signature will deepen bilateral economic and commercial ties.