The free trade agreement between India and Oman is likely to enhance textile trade between the two countries.
The proposed free trade agreement between India and Oman is likely to provide immense opportunities to Indian businesses across various sectors, including textiles, food processing, autos, gem and jewelry products, agrochemicals, renewable energy, and auto components, India’s commerce and industry minister, Piyush Goyal, told Parliament.
Addressing the India–Oman Business Forum on Wednesday in Muscat, Goyal said the deal had the potential to significantly increase economic ties between the two nations, especially since Oman served as a gateway to the Gulf Cooperation Council states, as well as Eastern Europe, Central Asia, and Africa. He highlighted the immense potential available through the deal because of Oman’s location.
The FTA will be signed on Thursday in Oman in the presence of Prime Minister Modi. After implementation, the agreement will help ease or remove tariffs, reduce and facilitate trade barriers and improve market access for Indian exporters. This will allow Indian exporters to better compete in the international market because of reduced barriers.
Textiles, one of the most significant sectors of Indian exports, are poised to gain from this pact. The new pact is likely to give Indian textile exporters preferential access to the market in Oman, thus enabling Indian textile makers to sell goods to Omani customers with more competitive pricing. This pact is also in line with the Indian government’s strategy of diversifying its export markets. Negotiations for the India-Oman Comprehensive Economic Partnership Agreement started last November 2023 and concluded earlier this year. It will be Oman’s first free trade agreement in almost two decades.
At the same event, the Oman minister of commerce, industry, and investment promotion, Qais Al Yousef, indicated that India has become the country’s third-largest trading partner. This indicates that Oman still has relevance as a destination for investments by India in various strategic sectors. The bilateral goods trade between the Indian government and the Omani government in the year 2024-25 stands around 10.5 billion dollars. This represents the intensifying relationship between the two countries.
