Unlocking New Horizons: India-Oman Free Trade Agreement Promises Economic Growth
Significant Opportunities Await with India-Oman FTA
New Delhi: On Wednesday, Piyush Goyal, the Minister of Commerce and Industry, announced that the upcoming free trade agreement (FTA) between India and Oman is set to create vast opportunities in various sectors such as textiles, food processing, automobiles, gems and jewellery, agrochemicals, renewable energy, and auto components.
Speaking at the India-Oman Business Forum in Muscat, Goyal emphasized Oman's strategic position as a gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa, which will enhance market access for Indian enterprises.
Oman's Minister of Commerce, Industry and Investment Promotion, Qais Al Yousef, noted that India has become Oman’s third-largest trading partner, with the nation being a significant destination for Indian investments in key sectors.
He revealed that Indian investments in Oman have surged more than threefold since 2020, reaching $5 billion, covering areas like green steel, green ammonia, aluminium production, and logistics. This growth signifies India's trust in Oman as a reliable long-term operational base.
Goyal described the proposed FTA as a pivotal moment in the bilateral relationship, marking Oman’s first free trade agreement in nearly twenty years.
He also mentioned that Prime Minister Narendra Modi's upcoming visit to Oman aligns with the celebration of 70 years of diplomatic ties between the two nations. Goyal recalled India's invitation to Oman as a special guest during its G20 Presidency in 2023, highlighting the strong mutual trust and strategic partnership.
Furthermore, Goyal pointed out the potential for collaboration in various services, including professional services, accounting, business process re-engineering, research and development, tourism, healthcare, and education. He identified four key areas for future cooperation: energy transition, infrastructure development, food security, and collaboration in startup ecosystems, particularly in deep tech, logistics, and artificial intelligence.
Highlighting the shared focus on youth-driven growth, Goyal noted the alignment between India’s vision of 'Viksit Bharat 2047' and Oman’s Vision 2040. He stressed that the youthful energy and entrepreneurial spirit in both nations lay a solid foundation for enduring economic collaboration.
Goyal expressed optimism that the India-Oman partnership, rooted in trust, shared history, and complementary strengths, is ready to embark on a new growth phase. He added that businesses from both countries, collaborating as trusted partners, can fully capitalize on the opportunities arising from this enhanced bilateral engagement.