India–Oman FTA set to open new trade corridors, boost investments across high-growth sectors

THEBUSINESSBYTES BUREAU

NEW DELHI, DECEMBER 17, 2025

The proposed India–Oman Free Trade Agreement (FTA) is poised to unlock a new wave of opportunities across multiple high-growth sectors, reinforcing economic ties between the two countries and expanding India’s access to key global markets, Union Minister of Commerce and Industry Piyush Goyal said on Wednesday.

Addressing the India–Oman Business Forum in Muscat, Goyal said the forthcoming FTA would create significant opportunities for Indian businesses in sectors such as textiles, food processing, automobiles, auto components, agrochemicals, gems and jewellery, renewable energy and allied industries. He underlined Oman’s strategic geographic advantage, describing it as a vital gateway to the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia and Africa, offering Indian enterprises enhanced market access and supply chain integration.

Highlighting the growing depth of bilateral trade and investment, Oman’s Minister of Commerce, Industry and Investment Promotion, Qais Al Yousef, said India has emerged as Oman’s third-largest trading partner. He noted that Indian investments in Oman have more than tripled since 2020 to touch USD 5 billion, spanning strategic sectors such as green steel, green ammonia, aluminium manufacturing and logistics. These investments, he said, reflect India’s confidence in Oman as a long-term and stable operating base.

Goyal described the proposed FTA as a defining milestone in India–Oman relations, noting that it would be Oman’s first free trade agreement in nearly two decades. He recalled the centuries-old maritime and commercial links between the two nations, citing historic trade routes through ports such as Lothal as a testament to the enduring economic relationship.

The Minister also pointed out that the upcoming visit of Prime Minister Narendra Modi to Oman coincides with the celebration of 70 years of diplomatic relations between the two countries, further strengthening the partnership. He recalled India’s decision to invite Oman as a special guest during its G20 Presidency in 2023 as a reflection of deep mutual trust and strategic alignment.

Beyond goods trade, Goyal highlighted strong potential for collaboration in services, including professional and accounting services, business process re-engineering, research and development, tourism, healthcare and education. He identified four priority areas for future cooperation: energy transition with a focus on green hydrogen and renewables; infrastructure development including ports and multimodal logistics; food security through cold chains and food parks; and deeper collaboration between startup ecosystems, particularly in deep tech, logistics and artificial intelligence.

Emphasising the shared focus on youth-led growth, Goyal noted the alignment between India’s Viksit Bharat 2047 vision and Oman’s Vision 2040, stating that the demographic dividend and entrepreneurial energy in both countries provide a strong foundation for long-term economic cooperation.

Expressing optimism about the road ahead, Goyal said the India–Oman partnership, anchored in trust, shared history and complementary strengths, is well positioned to enter a new phase of growth, with businesses on both sides set to fully leverage the opportunities emerging from a strengthened bilateral engagement.