The India–Oman free trade agreement is expected to boost bilateral textile trade by improving market access, lowering tariffs, and enhancing export opportunities.
The proposed India–Oman Free Trade Agreement (FTA) is expected to create significant opportunities across a wide range of sectors, including textiles, food processing, automobiles, gems and jewelry, agrochemicals, renewable energy and auto components, according to India’s minister for commerce and industry, Piyush Goyal.
Addressing the India–Oman Business Forum in Muscat on Wednesday, Goyal said the agreement had the potential to substantially deepen economic engagement between the two countries, particularly with Oman positioned as a strategic gateway to the Gulf Cooperation Council region, as well as to Eastern Europe, Central Asia and Africa. He noted that the scope for growth under the pact was extensive, given Oman’s geographic and trade linkages.
The FTA is scheduled to be signed on Thursday in Oman in the presence of Prime Minister Narendra Modi. Once implemented, the agreement is expected to reduce or eliminate tariffs, lower trade barriers and improve market access for Indian exporters, enabling them to compete more effectively in the region.
Textiles, which account for a significant share of India’s overall exports, are set to benefit in particular. The agreement is expected to provide preferential access to the Omani market, allowing Indian textile manufacturers to offer products at more competitive prices. The pact is also aligned with India’s broader strategy to diversify its trade partnerships, strengthen economic ties with West Asia and reduce reliance on traditional export markets.
Negotiations for the India–Oman Comprehensive Economic Partnership Agreement began in November 2023 and were concluded earlier this year. The deal will be Oman’s first free trade agreement in nearly two decades.
At the same forum, Oman’s minister of commerce, industry and investment promotion, Qais Al Yousef, said India had emerged as the country’s third-largest trading partner and highlighted Oman’s continued importance as a destination for Indian investments across strategic sectors.
Bilateral goods trade between India and Oman totaled approximately $10.5 billion in the 2024–25 financial year, underlining the growing economic relationship between the two nations.
News Courtesy : Apparel resources