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The agreement is likely to come into effect in the first quarter of the next financial year. This agreement is considered significant at a time when India is facing high tariffs of up to 50 percent in its largest export market, the United States.
India, Oman to sign free trade pact
New Delhi: India and Oman signed a Free Trade Agreement (FTA) on Thursday, which will grant duty-free access to 98 percent of Indian exports to the Omani market. The agreement is expected to significantly benefit sectors such as textiles, agricultural products, and leather. In return, India will reduce import duties on certain products from Oman, including dates, marble, and petrochemical products.
The agreement is likely to come into effect in the first quarter of the next financial year. This agreement is considered significant at a time when India is facing high tariffs of up to 50 percent in its largest export market, the United States.
Union Minister of Commerce and Industry Piyush Goyal met with Oman's Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef. The meeting focused on strengthening economic cooperation between India and Oman. Goyal described the discussions as productive, stating that trade and investment relations between the two countries are already strong and there is immense potential to take them to new heights.
What did Piyush Goyal say in his message?
In a message shared on social media, Piyush Goyal said that the growing economic engagement between India and Oman is progressing under the leadership of Prime Minister Narendra Modi and Sultan Haitham bin Tariq. He expressed confidence that the upcoming discussions between the leaders will transform the civilizational ties into a new chapter of deeper economic cooperation.
Modi receives invitation from the Sultan of Oman
This meeting took place as Prime Minister Narendra Modi arrived in Oman on Wednesday, the final leg of his four-day, three-nation tour. He had previously visited Jordan and Ethiopia. PM Modi is in Oman at the invitation of Sultan Haitham bin Tariq. During the visit, the two leaders will discuss strengthening the strategic partnership and expanding cooperation in commercial and economic sectors. India-Oman Relations are 70 Years Old
This visit is considered particularly significant in light of the 70 years of diplomatic relations between India and Oman. Earlier, Sultan Haitham bin Tariq had made a state visit to India in December 2023.
How have trade relations been between India and Oman?
In terms of economic data, trade relations between India and Oman are continuously strengthening. Bilateral trade in the financial year 2023-24 was $8.947 billion, which increased to $10.613 billion in 2024-25. Investment ties between the two countries also remain strong, with more than 6,000 India-Oman joint ventures operating in Oman.
Total direct investment from India to Oman is approximately $675 million, while Oman has invested $610.08 million in FDI equity in India between April 2000 and March 2025. However, the trade balance remains in Oman's favor. The trade deficit in the financial year 2024-25 was $2.48 billion, compared to $94.37 million the previous year. During this period, imports from Oman to India increased by 44.8 percent, while India's exports decreased by 8.1 percent.
What did GTRI say in its report?
According to the GTRI report, the proposed India-Oman Comprehensive Economic Partnership Agreement (CEPA) is expected to significantly boost India's industrial exports. It states that Oman currently levies import duties ranging from zero to 100 percent on select products. More than 80 percent of goods from India enter Oman at an average tariff of approximately 5 percent. GTRI said that eliminating or reducing these tariffs under the CEPA is likely to improve the competitiveness of Indian industrial exports in the Omani market.
