Bilateral trade between India and Oman reached $10.61 billion in 2024-25, an increase of 18.6 percent year-on-year. India imported goods worth $6.55 billion from Oman while exporting $4.07 billion, resulting in a trade deficit of $2.48 billion.
Key Exports and Imports
India’s main exports to Oman included petroleum products ($1.43 billion), engineering goods ($812.2 million), mica, coal, and ores ($428.6 million), along with chemicals valued at $241.4 million. Labour-intensive products such as textiles, gems and jewellery, and leather products are also shipped, and could benefit from tariff relief under a trade agreement.
Imports from Oman were dominated by mineral fuels and fertilisers ($4.01 billion), followed by organic chemicals ($608.74 million) and plastics ($219.24 million). Oman imposes import duties ranging from zero to 100 percent, with steeper tariffs on certain meats, wines, and tobacco products.
Free Trade Agreement Timeline
Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between India and Oman began in November 2023, with five rounds of in-person talks, the last held in New Delhi in January 2025. According to Commerce Ministry officials, negotiations have concluded, and the FTA is expected to be announced soon.
Lessons from India-UAE CEPA
India’s previous CEPA with the UAE, effective from May 1, 2022, nearly doubled bilateral merchandise trade to $83.7 billion in 2023-24 from $43.3 billion in FY21. Bilateral trade reached $100.06 billion in FY25, with imports growing faster than exports. Labour-intensive exports, particularly gems and jewellery, increased by over 60 percent from FY22 to FY24.
Strategic Importance of India-Oman FTA
The India-Oman FTA, alongside potential agreements with other GCC nations like Qatar, is expected to diversify Indian exports and reduce dependence on traditional buyers. The deal could boost sectors affected by rising US tariffs, including engineering goods, textiles, and other labour-intensive products.
