While negotiations are still underway, trade experts believe that a balanced and forward-looking agreement could deliver mutual gains. For India, tariff-free access for over $3 billion in exports would strengthen its export-led growth ambitions
India and Oman are moving closer to finalising a comprehensive Free Trade Agreement (FTA) that could significantly enhance bilateral trade and investment ties. Once concluded, the proposed pact is expected to allow Indian exports worth more than $3 billion to enter the Omani market at zero or significantly reduced tariffs, offering a major boost to several key sectors of the Indian economy.
Among the biggest beneficiaries are likely to be Indian textiles, chemicals, engineering goods, food products, and gems and jewellery. These sectors currently face varying levels of customs duties in Oman, which affect price competitiveness. The removal of tariffs would make Indian products more attractive in the Omani market and help exporters expand their footprint in the wider Gulf region, where Oman serves as a strategic gateway.
For Oman, closer ties with one of the world’s fastest-growing major economies could support its goals of economic resilience and diversification. If successfully implemented, the India–Oman FTA could mark a new chapter in bilateral economic relations
Negotiations between New Delhi and Muscat have gained momentum in recent months, reflecting a shared interest in deepening economic cooperation. Both countries are seeking to diversify trade beyond traditional energy links and strengthen supply chains in emerging sectors. The proposed FTA is also aligned with India’s broader strategy of securing trade agreements with key partners in West Asia to support export growth and reduce dependence on a limited set of markets.
Oman, which is pursuing economic diversification under its long-term development vision, sees India as a reliable trade and investment partner. Indian companies already have a strong presence in Oman across sectors such as infrastructure, mining, manufacturing, healthcare, and information technology. A trade agreement could further encourage Indian investments, technology transfer, and joint ventures, particularly in downstream manufacturing and logistics.
From India’s perspective, improved market access to Oman could support small and medium-sized exporters by lowering entry barriers and improving margins. It could also help Indian firms integrate more deeply into regional value chains, especially as global trade patterns continue to shift. Additionally, provisions related to services, investment protection, and trade facilitation are expected to enhance overall ease of doing business between the two countries.
