India-Oman free trade pact to bolster economic engagement with Gulf

New Delhi: The proposed India-Oman Free Trade Agreement (FTA) will mark a major step in deepening India’s economic engagement with the Gulf region.

This would be Oman’s second FTA with an individual country and the first FTA they have done in about 20 years. The agreement is expected to enhance market access, promote investments, and strengthen cooperation across key sectors.

It will support trade diversification and supply chain resilience at a time of 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. These investments reflect India’s confidence in Oman as a long-term operating base.

The FTA between the two countries is a defining milestone in the bilateral relationship between the two countries.

In the last few years, India has signed many FTAs, which are reaping rewards for our 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 and significantly expand bilateral trade.

The trade and economic partnership (EFTA) with Switzerland, Norway, Iceland, and Liechtenstein in 2024 has seen strong investment commitments into India.

The Economic Cooperation and Trade Agreement (ECTA) in 2022 between India and Australia has cut or eliminated tariffs on most traded goods and opened new opportunities for Indian exports.

With the UAE, the 2022 CEPA 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 Mauritius as a gateway to Africa.

This expanding network of agreements highlights India’s foresighted trade strategy focused on diversification, resilience, and mutually beneficial growth.

On Wednesday, Commerce and Industry Minister Piyush Goyal said the proposed FTA would open significant opportunities across sectors, including textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy and auto components.

Addressing the India-Oman Business Forum in Muscat, Goyal highlighted Oman’s strategic location as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia and Africa, which offers enhanced market access for Indian businesses.

IANS