Oman, India Nears Free Trade Deal to Boost Economic Diversification

Oman and India are negotiating a free trade agreement (FTA) that is expected to significantly enhance bilateral trade, attract investment, and support Oman’s economic diversification under Oman Vision 2040. Experts highlight that the FTA will reduce customs duties, expand non-oil exports, and open new opportunities in sectors such as health, technology, renewable energy, infrastructure, tourism, and maritime connectivity. The agreement is seen as a strategic move leveraging India’s growing economic power and Oman’s geographic role as a gateway between East and West, with potential to push bilateral trade above RO5 billion. It is also expected to boost GDP growth, create jobs, and strengthen regional and global supply chains. Additionally, the FTA will facilitate joint investments and transfer of Indian expertise, benefiting small and medium-sized enterprises and key industries like oil derivatives, textiles, and pharmaceuticals. These developments reflect a broader trend of Oman using FTAs to enhance competitiveness and diversify income sources in line with its national economic objectives.