New Delhi: The proposed India-Oman Free Trade Agreement (FTA) is set to be a landmark in deepening India’s economic engagement with the Gulf region. This would be Oman’s second FTA with an individual country and the first in about 20 years, aimed at enhancing market access, promoting investments, and strengthening cooperation across key sectors.
The agreement is expected to support trade diversification and supply chain resilience amid global economic realignment. Indian investments in Oman have more than tripled since 2020, reaching $5 billion, spanning sectors such as green steel, green ammonia, aluminium manufacturing, and logistics, reflecting India’s confidence in Oman as a long-term operating base.
The FTA marks a defining milestone in bilateral relations, strengthening economic and strategic ties between the two countries.
In recent years, India has signed several FTAs yielding significant benefits for farmers, traders, and exporters. The Comprehensive Economic and Trade Agreement (CETA) with the UK this year will reduce tariffs on more than 90 per cent of traded goods, significantly expanding bilateral trade. The trade and economic partnership (EFTA) with Switzerland, Norway, Iceland, and Liechtenstein in 2024 has already attracted strong investment commitments into India.
The Economic Cooperation and Trade Agreement (ECTA) with Australia in 2022 cut or eliminated tariffs on most traded goods, opening new avenues for Indian exports. Similarly, the CEPA with the UAE in 2022 reduced tariffs on over 90 per cent of Indian exports, boosting trade in gems and jewellery, textiles, leather, and engineering goods. India’s first Africa-focused trade pact with Mauritius in 2021 improved market access, positioning the island nation as a gateway to Africa.
This growing network of agreements underscores India’s foresighted trade strategy, focused on diversification, resilience, and mutually beneficial growth.
Addressing the India-Oman Business Forum in Muscat, Commerce and Industry Minister Piyush Goyal said the proposed FTA would open significant opportunities across textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy, and auto components. He also highlighted Oman’s strategic location as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa, providing enhanced market access for Indian businesses.
The India-Oman FTA is expected to further cement bilateral trade and investment ties, strengthening India’s footprint in the Gulf region.
With IANS inputs