India-Oman Free Trade Agreement Set to Unleash Economic Potential

The Free Trade Agreement (FTA) between India and Oman, signed in December 2025, is expected to take effect on June 1, 2026. It aims to strengthen economic ties by providing duty-free access for a majority of exports. Meanwhile, India is exploring a CEPA with Chile to enhance economic exchanges.

The Free Trade Agreement (FTA) between India and Oman is poised to initiate a new era of economic collaboration as it is expected to come into force on June 1, 2026, according to Commerce and Industry Minister Piyush Goyal.

Signed in December 2025, the agreement will allow 98% of Indian exports, including textiles, agriculture, and leather goods, to enter Oman duty-free, while India will lower tariffs on Omani dates, marbles, and petrochemical products. The Omani delegation is engaged in discussions to further boost trade and investment relations with India.

In other news, India is actively seeking to expand its preferential trade agreement with Chile to a Comprehensive Economic Partnership Agreement (CEPA), aiming to cover digital services, investment promotion, MSMEs, and critical minerals. This effort could provide India with access to Chile's abundant lithium reserves, crucial for electronics and solar sectors.