India sees $2 billion export boost to Oman within 2 years of trade deal

Prime Minister Narendra Modi with Haitham bin Tarik, Sultan of Oman in Muscat

India sees an additional $2 billion in exports within the first two years following the implementation of the trade deal with Oman, the commerce ministry said.

This would raise India’s exports to Oman to over $6 billion, up from $4.1 billion in 2024–25, once the tariff concessions under the trade agreement take effect.

Media reports said India aims to implement the trade deal with Oman by the first quarter of the next financial year.

Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.

India’s exports to Oman during the previous fiscal stayed almost steady with slight dips from $4.48 billion in FY23 and $4.43 billion in FY24, while imports witnessed an almost 45 percent jump on-year due to a sharp contraction in 2023-24.

It imported goods worth $6.55 billion from Oman in FY25, leading to a trade deficit of $2.48 billion in the previous financial year.

The two countries signed the Comprehensive Economic Partnership Agreement (CEPA) on December 18, the second day of Prime Minister Narendra Modi's visit to the Gulf country.

Top exports to Oman in FY25 were led by petroleum products at $1.43 billion, engineering goods worth $812.2 million, mica, coal and other ores of $428.6 million and chemicals amounting to $241.4 million.

The country also ships limited amounts of textiles, gems and jewellery, and leather products to Oman. The trade deal is expected to boost exports of these labour-intensive goods that are facing the brunt of steeper tariffs from the US.

Over 80 percent of Indian goods are subject to an average import duty of 5 percent by Oman.

The CEPA gives India zero-duty access on 98.08 percent of Oman’s tariff lines, covering 99.38 percent of Indian exports by value.

When it comes to India’s imports from Oman, mineral fuels and fertilisers make up the largest share.

Out of India’s imports worth $6.55 billion from the Gulf nation in FY25, $4.01 billion consisted of mineral fuels and fertilisers, followed by organic chemicals worth $608.74 million and plastics valued at $219.24 million.

As part of the deal, India will cut duties on about 78 percent of its tariff lines, covering nearly 95 percent of imports from Oman, with sensitive products given access mainly through tariff-rate quotas.