New Delhi pushes ahead with economic diplomacy as Oman FTA nears completion, eyes broader engagement across the Gulf
India is on the verge of signing a significant free trade agreement (FTA) with Oman, deepening its economic engagement with Gulf nations amid rising regional tensions. The development comes as part of a broader strategy to strengthen partnerships with countries that have taken a neutral stance during the recent India-Pakistan conflict and encouraged diplomatic de-escalation, reported moneycontrol.com.
Talks for the India-Oman Comprehensive Economic Partnership Agreement (CEPA) were officially launched in November 2023. Trade between the two nations remains robust—India’s exports to Oman between April and February of FY25 amounted to $4.42 billion, while imports reached $4.52 billion.
Major imports include petroleum products, urea, polymers, chemicals, pet coke, and gypsum. India, in turn, exports light oils, floating structures, aluminium oxide, rice, aircraft parts, meat, sunglasses, and a variety of fruits, vegetables, and spices.
Sources reveal that the India-Oman FTA is almost finalized, with a formal announcement expected later this month.
The two countries have also modernised their Double Taxation Avoidance Agreement (DTAA), aligning it with global tax standards. Joint venture investments from India in Oman stood at approximately $776 million as of December 2023. Oman’s FDI inflow into India totaled $597.14 million between April 2000 and June 2024, according to Indian Embassy data.
India is also considering trade agreements with other Gulf nations such as Qatar, following the successful FTA with the UAE and ongoing negotiations with the Gulf Cooperation Council (GCC), which includes Saudi Arabia, Kuwait, Bahrain, and others. The GCC bloc plays a vital role in India’s energy security and investment landscape.
This strategic economic outreach is seen as a calculated move to not only diversify India’s trade relationships but also to deepen energy, investment, and security ties with the region’s key players. The recent visit by the Emir of Qatar to New Delhi further underscored the Gulf’s growing economic interest in India.