India is on the cusp of finalizing a Free Trade Agreement (FTA) with Oman, one of its oldest strategic partners in the Gulf region. The deal is expected to deepen economic ties and open new avenues for trade and investment.
According to The Economic Times, the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which was formally launched in November 2023, is in its final stages.
“Only a few issues are left to be resolved with Oman and an announcement could be made this month,” a source involved in the negotiations revealed.
Key Trade Highlights :
- Exports to Oman (Apr–Feb FY25): $4.42 billion
- Imports from Oman: $4.52 billion
- Top Indian exports :
- Light oils and preparations
- Ships and floating structures
- Aluminium oxide (excluding artificial corundum)
- Rice, mechanical appliances, sunglasses, aircraft
- Agricultural items such as fruits, vegetables, spices, tea, and coffee
- Major imports from Oman:
- Petroleum products and urea (over 70% of total imports)
- Polymers of propylene and ethylene, pet coke, gypsum, chemicals, iron and steel
The economic relationship goes beyond trade. India and Oman have recently updated their Double Taxation Avoidance Agreement (DTAA), aligning it with global standards to facilitate smoother cross-border transactions.
💼 Investment Ties:
- As of December 2023, joint venture investments in Oman stood at $776 million.
- FDI inflows from Oman to India (Apr 2000 – Jun 2024): $597.14 million (Source: Indian Embassy in Oman)
🌐 Strengthening Gulf Partnerships
India’s engagement with Oman is part of a broader strategy to enhance economic cooperation across the Gulf:
- An FTA with the UAE has already been signed
- Talks are ongoing with the Gulf Cooperation Council (GCC), which includes:
- Saudi Arabia
- UAE
- Qatar
- Kuwait
- Oman
- Bahrain
- India is also seriously considering an FTA with Qatar, following the Emir’s visit to New Delhi in February 2025. Qatar has expressed strong interest in increasing investments in India.
These developments reflect India’s growing focus on building robust economic linkages in the region, especially in sectors like trade, energy, infrastructure, and security.
