Will the India-Oman Free Trade Agreement Enhance Economic Ties with the Gulf?
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Synopsis
The India-Oman FTA represents a remarkable opportunity to boost economic relations between India and Oman, emphasizing growth in investment and trade diversification across various sectors.
Key Takeaways
- India-Oman FTA is a significant step in enhancing bilateral relations.
- It aims to boost investments and promote trade diversification.
- Indian investments in Oman have reached $5 billion.
- Oman’s strategic location offers access to various global markets.
- Several sectors will benefit from this agreement, including textiles and renewable energy.
New Delhi, Dec 18 (NationPress) The anticipated India-Oman Free Trade Agreement (FTA) signifies a pivotal advancement in strengthening India's economic relations with the Gulf region.
This will be Oman’s second FTA with a single nation and their first in nearly two decades. The agreement aims to improve market access, stimulate investments, and foster collaboration across vital sectors.
It is poised to aid in trade diversification and enhance supply chain resilience during a period of global economic shifts.
Since 2020, Indian investments in Oman have surged to over $5 billion, encompassing industries like green steel, green ammonia, aluminium manufacturing, and logistics. These investments demonstrate India's long-term commitment to Oman as a strategic operational hub.
This FTA represents a significant milestone in the bilateral ties between the two nations.
In recent years, India has entered into numerous FTAs, benefiting farmers, traders, and exporters.
The Comprehensive Economic and Trade Agreement (CETA) with the UK this year will lower tariffs on more than 90% of traded goods and significantly broaden bilateral trade.
The Economic Free Trade Agreement (EFTA) with Switzerland, Norway, Iceland, and Liechtenstein in 2024 has attracted substantial investment commitments to India.
The Economic Cooperation and Trade Agreement (ECTA) signed with Australia in 2022 has either reduced or eliminated tariffs on a majority of traded goods, opening new avenues for Indian exports.
With the UAE, the 2022 CEPA has lowered tariffs on over 90% of Indian exports, enhancing trade in gems and jewellery, textiles, leather, and engineering products.
India’s inaugural trade agreement focused on Africa with Mauritius in 2021 has improved market access, establishing Mauritius as a gateway to Africa.
This expanding web of agreements illustrates India’s strategic trade approach centered on diversification, resilience, and mutual growth.
On Wednesday, Commerce and Industry Minister Piyush Goyal stated that the proposed FTA would unlock significant opportunities across various sectors including textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy, and auto components.
Speaking at the India-Oman Business Forum in Muscat, Goyal emphasized Oman’s strategic position as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa, providing enhanced market access for Indian enterprises.
Point of View
I emphasize that the India-Oman Free Trade Agreement is a forward-thinking initiative that aligns with India’s broader strategy of economic diversification and strengthening ties with the Gulf region, which holds immense potential for mutual growth.
NationPress
20/12/2025
Frequently Asked Questions
What is the India-Oman Free Trade Agreement?
The India-Oman Free Trade Agreement (FTA) is a proposed agreement aimed at enhancing economic relations between India and Oman by improving market access, promoting investments, and strengthening cooperation across key sectors.
What sectors will benefit from the FTA?
The FTA is expected to benefit sectors such as textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy, and auto components.
How significant is this FTA for Oman?
This FTA marks Oman’s second with a single country and its first in nearly two decades, indicating a renewed focus on international trade relations.
What impact will the FTA have on Indian investments in Oman?
The FTA is expected to further enhance Indian investments in Oman, which have already tripled since 2020, reflecting confidence in Oman as a long-term operational base.
Why is Oman considered a strategic location for trade?
Oman’s strategic location as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa provides enhanced market access for Indian businesses.
