Trade Transformation: India-Oman Pact to Boost Market Access

India and Oman are set to sign a free trade agreement that will boost market access for Indian goods, notably petroleum and machinery. The agreement aims to eliminate tariffs on a wide range of products, enhancing trade in both directions and potentially increasing bilateral economic cooperation.

India and Oman are poised to sign a landmark free trade pact on Thursday, expected to bolster market access for Indian export products including petroleum, rice, and machinery, according to insights from the Global Trade Research Initiative (GTRI).

Under the current tariff regime, over 80% of Indian goods incur an average duty of about 5% while some products face tariffs as high as 100%. The Comprehensive Economic Partnership Agreement (CEPA) aims at removing these barriers to enhance competitiveness, especially for Indian industrial exports, although long-term success necessitates product quality improvements, noted GTRI Founder Ajay Srivastava.

The trade deal is seen as a strategic move not only for economic benefits but also for strengthening regional ties, given the existing 6,000 India-Oman joint ventures and significant Indian investments in Oman's free zones. In FY 2025, bilateral trade between the two nations was approximately USD 10.5 billion, highlighting the potential for growth.

(With inputs from agencies.)