India and Oman Set to Launch Free Trade Agreement: What It Means for Exports

The anticipated Free Trade Agreement (FTA) between India and Oman is set to commence on June 1, 2026, as announced by Commerce Minister Piyush Goyal. This agreement will enable duty-free access for 98% of India's exports to Oman, while India will reduce tariffs on select Omani products. Additionally, discussions are ongoing with Chile to expand trade relations through a Comprehensive Economic Partnership Agreement (CEPA), focusing on critical minerals essential for various industries. The current trade dynamics between India and Chile show a decline in exports but a significant increase in imports, highlighting the evolving economic landscape.

By Narendra Chaudhary May 12, 2026, 18:21 IST

India-Oman Free Trade Agreement Launch

New Delhi: The Commerce and Industry Minister, Piyush Goyal, announced on Tuesday that the free trade agreement (FTA) between India and Oman is anticipated to take effect on June 1, 2026.

This agreement was finalized in December 2025.

Goyal mentioned, "I had a productive meeting with the Omani delegation today, and we are optimistic about the FTA's implementation starting June 1, 2026," while addressing the media.

The Omani representatives are in discussions aimed at enhancing trade and investment opportunities.

This agreement will allow 98% of India's exports, including textiles, agricultural products, and leather goods, to enter Oman duty-free. Conversely, India will lower tariffs on Omani goods such as dates, marble, and petrochemical products.

When questioned about his discussions with the Chilean foreign minister, Goyal acknowledged the challenges posed by the differing economic sizes and opportunities available in both nations.

"We are working to bridge that gap with innovative strategies," he added.

"If we can secure a favorable deal regarding critical minerals and other mining concessions, there is a strong possibility that we could finalize an FTA with Chile," he stated.

India and Chile have been operating under a preferential trade agreement (PTA) since 2006 and are currently in talks to expand it into a Comprehensive Economic Partnership Agreement (CEPA).

The CEPA aims to enhance the existing PTA and cover a wider array of sectors, including digital services, investment promotion, cooperation, micro, small, and medium enterprises (MSMEs), and critical minerals.

This pact could facilitate India's access to essential minerals, which are crucial for the electronics, automotive, and solar industries.

Reports indicate that Chile possesses the largest lithium reserves globally and is the leading copper producer.

Bilateral trade between India and Chile remains modest, with India's exports to Chile decreasing by 2.46% to USD 1.15 billion in 2024-25, while imports surged by 72% to USD 2.60 billion.