India Nears Free Trade Agreement with Oman Amid Strengthening Gulf Ties:

Suspense crime, Digital Desk : India is set to finalize a free trade agreement (FTA) with Oman, the oldest of its strategic allies in the Gulf region. It has been reported that barely a few details remain to be worked out, with an official declaration expected within a month.

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) formal negotiations commenced in November 2023. The agreement is expected to enhance trade and investment on a bilateral basis escalate dramatically.

Trade Values and Important Goods

India’s exports to Oman between April 2024 and February 2025, were valued at approximately $4.42 billion, while imports were at $4.52 billion. Important import items are:

- Petroleum products
- Urea
- Polymers of propylene and ethylene
- Pet coke
- Gypsum
- Chemicals
- Iron and steel

The major Indian exports to Oman included:

- Light oils and petroleum preparations
- Ships and floating structures
- Aluminium oxide
- Rice
- Mechanical appliances
- Aircraft parts
- Sunglasses
- Meat and eggs
- Fruits, vegetables, spices, tea, and coffee

Investment and Tax Regulation

The two nations have also made changes to their Double Taxation Avoidance Agreement (DTAA) in alignment with international cross-border taxation trends.

As joint venture investments in Oman stood at $776 million as of December 2023.

From April 2000 until June 2024, the FDI outflows from Oman to India were recorded at $597.14 million.

Enhancing Participation Throughout the Gulf

India Is seeking for new opportunities in the gulf countries. Talks are in progress with:

Qatar, which has shown interest in large scale investment in India.

Gulf Cooperation Council (GCC) bloc where members include UAE, Saudi Arabia, Bahrain, Kuwait, and Oman.

India has signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE and has talks to offer comparable agreements to other members of the GCC.