India, Oman to sign trade agreement today

INdia and sultanate of oman ar all go under to ratify a release trade agreement (FTA) on Thursday, Muscat’s first FTA in about 17 years after it entered into a similar deal with the US, that will further strengthen bilateral strategic ties between the two nations with wider scope ranging from goods, services, investments, green energy and the net-zero.Jointly addressing the India-Oman Business Forum in Muscat on Wednesday with Oman’s trade minister Qais Al Yousef, Union commerce minister Piyush Goyal said, strong ties between the two nations “have been instrumental in bringing us to this very, very memorable and fateful day tomorrow, when before our two leaders, Qais and I will have the privilege of executing the first free trade agreement Oman is going to sign with a country after 17 long years.” The US-Oman FTA came into force on January 1, 2009.“I’m pleased to confirm that these negotiations have now been successfully concluded,” Yousef said, adding that the proposed agreement is in its “final” form. Underlining the India visit of Sultan in 2023, which was his first in 25 years, he said: “That visit launched the partnership for the future frameworks and initiated negotiations on the Oman-India Comprehensive Economic Partnership Agreement, or what is more known as CEPA.” Sultan Haitham bin Tarik made a state visit to India in the mid-December that year.Goyal said India values its relationship with Oman. “Our Hon’ble Prime Minister will be arriving here soon to celebrate the 70 years of bilateral relations between the two countries,” he said. Oman is the last leg of Prime Minister Narendra Modi’s three-day official visit to Jordan, Ethiopia and Oman. PM called them “valued partners” in a post on X while embarking on his three-nation tour on December 15, adding that “India has age-old civilisational ties” with these countries.Speaking about the heads of the two nations, Goyal said, both leaders share very strong bonds of friendship. “In fact, for the very first time, Oman was invited to the G20, during the Indian G20 Presidency in 2023. And that reflected the strong relations. At that time when these decisions were made, I was the G20 Sherpa and I was quite surprised at that decision when Prime Minister Modi said we want Oman as one of the special guests. And, today, I realise how important, how defining that decision was,” he said at the business forum.The proposed FTA offers immense opportunities for all sectors such as textiles, footwear, automobiles, gem and jewellery, agrochemical, renewable energy and auto components, he said. “The sky’s the limit, in terms of potential, particularly with Oman opening the door, the gateway to the GCC (Gulf Cooperation Council) region, to Eastern Europe, Central Asia, to Africa,” he said, adding that the two partners can also look at significant collaborations in the services space.“India is a major global economy. Oman is a stable trusted partner… When these strengths come together in a practical way, the results speak for themselves,” Yousef said. Emphasising that the comprehensive deal is not just confined to bilateral goods trade, Oman’s trade minister said, companies seek “stable base” for wider reach. “Our strengths are clear – advanced logistics infrastructure and ports, free and special economic zones, competitive industrial platforms and the strong commitment to energy transition and net-zero,” he said. Referring to CEPA between Oman and India, which provides an important framework, he said its real value will be realized through implementation. It’s a tool to deepen investment, strengthen supply chains, and enable joint growth, he said. Growth, not only for trade, but also in production, innovation and regional integration, he added.Yousef told the business forum that India has emerged as Oman’s third-largest trading partner and Oman continues to be a key destination for Indian investments across strategic sectors. Indian investments in Oman have more than tripled since 2020, reaching $5 billion, spanning sectors such as green steel, green ammonia, aluminium manufacturing and logistics. He said these investments reflect India’s confidence in Oman as a long-term operating base.According to government data, bilateral merchandise trade between India and Oman grew by 18.63% in 2024-25 to touch $10.61 billion. Cumulative FDI inflows from Oman to India stood at $605 million in 2024-2025. India exported goods worth $4.06 billion to Oman and imported merchandise worth more than $6.55 billion. Indian imports were dominated by crude oil and liquefied natural gas (LNG), which together accounted for a significant part of bilateral trade. Other major imports were urea, organic chemicals, anhydrous ammonia, and sulphur.