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Prime Minister Narendra Modi's official visit to Oman entered its final leg on Thursday, with India set to sign a Comprehensive Economic Partnership Agreement (CEPA) -- a free trade agreement (FTA) -- with the Gulf country on the same day. His visit to Oman marks the final day of his visit to three countries, including Jordan and Ethiopia.

"Today, we are making a historic decision, the impact of which will be heard for many decades to come... The Comprehensive Economic Partnership Agreement will bring new trust and energy to our partnership in the 21st century," said PM Modi.

Sources said the agreement will be signed at around 3:30 pm Oman time (5 pm India time). Officials from India and Oman have been engaging in talks on strengthening the cooperation and ties between the two nations in various fields, with detailed discussions towards advancing their strategic partnership.

PM Modi said that India has not just changed policies but transformed its economic DNA over the past 11 years.

He also highlighted that GST has transformed the country into an "integrated, unified" market.

The Insolvency and Bankruptcy Code (IBC), said PM Modi, has brought financial discipline, promoted transparency and strengthened investor confidence in the economy.

"We have condensed dozens of labour codes into just four. These are among the biggest labor reforms in India's history," noted PM Modi.

The FTA will be signed by Union Minister of Commerce and Industry Piyush Goyal and his Omani counterpart, Qais Al Yousef, in the presence of PM Modi and the Sultan of Oman.

This week, Goyal said that PM Modi's official visit to Oman coincides with 70 years of diplomatic relations between the two nations. He also said that the FTA will unlock new opportunities across key sectors on both sides.

PM Modi arrived in Oman on December 17 to strengthen bilateral ties between both sides. India is Oman’s third-largest trading partner.

Here are answers to a few frequenly asked questions (FAQs) on the subject:

What is a trade agreement? It is a special pact between two countries that lays down specific rules for trading goods and services with each other. Fundamentally, it aims to make trade easier, cheaper and more predictable while reducing barriers. Why is it important for two countries to arrive at a trade agreement? A trade pact helps two economies by lowering the barriers between them. This increases certainty and unlocks new opportunities for businesses and consumers on both sides. How does a trade deal help two economies?

A trade pact helps two economies by lowering tariffs, improving market access for businesses, boosting cross-border investment flows and strengthening supply chains.