India Signs Economic Partnership Agreement with Oman to Boost Trade and Investment
New Delhi/Dubai: India on Thursday signed a comprehensive economic partnership agreement with Oman to strengthen bilateral trade and investment ties, as New Delhi looks to diversify export markets amid steep US tariffs. The pact marks India’s second major trade agreement this year, following a similar deal with the United Kingdom.
Under the agreement, Oman has offered zero-duty access on over 98 per cent of its tariff lines, covering nearly all Indian exports including gems and jewellery, textiles, pharmaceuticals and automobiles. India, in return, will reduce tariffs on about 78 per cent of its tariff lines, accounting for nearly 95 per cent of imports from Oman by value.
India and Oman currently share annual trade worth over $10 billion. The partnership holds strategic importance for India, as Oman sits near the Strait of Hormuz, a critical transit route for global oil shipments.
Prime Minister Narendra Modi said the agreement would accelerate trade, strengthen investment ties and open new opportunities across sectors. The deal comes as Indian exporters seek alternatives after US President Donald Trump raised tariffs on Indian goods to 50 per cent in August.
This is Oman’s first bilateral trade agreement since its 2006 pact with the United States. Sensitive items such as dairy, tea, coffee and tobacco have been excluded, while services exports present new growth opportunities.
Our Final Thoughts
The India-Oman trade agreement reflects New Delhi’s broader push to diversify exports and strengthen strategic partnerships amid shifting global trade dynamics. With wide tariff concessions and access to new markets, the pact could offer a timely boost to Indian exporters while reinforcing India’s economic and geopolitical presence in the Gulf region.