The India–Oman Free Trade Agreement (FTA) is expected to unlock significant opportunities across a wide range of sectors including textiles, food processing, automobiles, auto components, gems and jewellery, agrochemicals and renewable energy, commerce and industry minister Piyush Goyal said on Wednesday.
Acoording to Economic Times, addressing the India–Oman Business Forum in Muscat, Goyal said the pact would position Oman as a strategic gateway for Indian companies to access the Gulf Cooperation Council (GCC) region, eastern Europe, central Asia and Africa. The agreement is scheduled to be signed on Thursday in the presence of Prime Minister Narendra Modi during his visit to Oman.
“The sky is the limit in terms of potential, particularly with Oman opening the doors as a gateway to the GCC region, eastern Europe, central Asia and Africa,” Goyal said.
Key sectors for collaboration
He identified energy, food security, startups and infrastructure, and multimodal logistics and export warehouses as four key areas for deeper collaboration between the two countries, adding that the FTA would create “immense opportunities” for businesses on both sides.
Negotiations for the India–Oman Comprehensive Economic Partnership Agreement began in November 2023 and were concluded earlier this year. Once signed, it will be Oman’s first free trade agreement in nearly two decades.
Speaking at the same forum, Oman’s minister of commerce, industry and investment promotion, Qais Al Yousef, said India has emerged as Oman’s third-largest trading partner and remains a key source of investment across strategic sectors.
Indian investments in Oman have more than tripled since 2020 to around $5 billion, spanning areas such as green steel, green ammonia, aluminium manufacturing and logistics, he said, adding that the trend reflects India’s confidence in Oman as a long-term investment destination.
India–Oman bilateral goods trade stood at about $10.5 billion in 2024-25, with petroleum products and urea accounting for over 70 per cent of India’s imports from Oman.
