India-Oman Trade Pact: A New Horizon for Bilateral Relations

India and Oman have signed an economic partnership agreement aimed at boosting bilateral trade. Oman offers zero-duty access to Indian exports, while India reduces tariffs on Omani imports, fostering diversification amid U.S. tariffs. This pact represents Oman's first bilateral deal since 2006 and enhances strategic regional ties.

India and Oman have inked an economic partnership agreement designed to enhance bilateral trade and forge deeper ties in the Middle East. Announced on Thursday, the deal aims to diversify trade paths to bypass steep U.S. tariffs, with Oman offering zero-duty access on over 98% of its tariff lines.

The agreement entails India slashing tariffs on about 78% of its tariff lines, thus covering nearly 95% of imports from Oman by value. The partnership holds strategic importance for India as Oman serves as a gateway to the Strait of Hormuz, a critical transit point for global oil shipments.

This marks Oman's first bilateral agreement since 2006 and follows increased tariffs imposed by U.S. President Donald Trump, complicating India's trade landscape. The pact promises significant growth in India's gem and jewellery exports and opens up opportunities in Oman's services sector, valued at $12.5 billion.

(With inputs from agencies.)