Dec 20 – India has signed a landmark economic partnership agreement with Oman, securing zero-duty access for more than 98 per cent of its exports as New Delhi accelerates efforts to deepen Middle East ties and diversify trade amid rising U.S. tariffs.
The pact covers a wide range of sectors — from textiles and pharmaceuticals to gems and jewellery, and automobiles — and aims to push bilateral trade beyond $10 billion a year, while strengthening India’s strategic and economic footprint in a key Gulf state.
Under the deal, Oman will grant India zero-duty access across more than 98 per cent of Omani tariff lines for Indian exports. India, in turn, will reduce tariffs on about 78 per cent of its tariff lines, covering nearly 95 per cent of imports from Oman by value.
The agreement marks Oman’s first bilateral trade deal since its 2006 pact with the United States, and is India’s second major agreement this year after the UK deal.
However, both sides excluded sensitive sectors, including dairy, tea, coffee, rubber and tobacco, shielding politically and economically sensitive domestic industries.
The agreement comes as India seeks to insulate itself from external shocks and broaden market access in response to escalating U.S. tariffs, which have reportedly risen to 50 per cent on some Indian goods.
Oman also carries strategic significance as a gateway to the Strait of Hormuz, a critical global oil transit chokepoint, giving India a stronger geopolitical and energy-security foothold in the Gulf.
For exporters, the deal opens new growth opportunities in key sectors. Gems and jewellery are expected to be among the major winners, with exports projected to rise sharply — from about $35 million to $150 million within three years, according to estimates cited in the brief.
Analysts say the agreement could deepen India–Oman economic interdependence and unlock increased Indian investment in Oman’s infrastructure and services.
It may also encourage other Gulf Cooperation Council (GCC) members to pursue similar pacts with India, potentially reshaping regional trade architecture at a time when global powers, including China, are also expanding influence across the Middle East.
By excluding sensitive agricultural items, the agreement protects domestic producers while enabling India’s competitive sectors to take advantage of improved access to the Omani market.
