India and Oman Set to Finalize Free Trade Agreement on Modi's Visit

Post by : Mara Rahim

As Prime Minister Narendra Modi concludes his three-nation tour in Muscat, India prepares to finalize a free trade agreement with Oman. This significant deal is anticipated to bolster cooperation in essential sectors like trade, investment, energy, defense, technology, agriculture, culture, and community ties. Major announcements are anticipated during this visit.

Commerce and Industry Minister Piyush Goyal will represent India in signing the agreement in the presence of Prime Minister Modi. This signing comes after nearly a year of in-depth discussions focused on trade between the two nations. India is keen on broadening its trade relationships throughout West Asia and has already established a comparable agreement with the UAE, while negotiations continue with the Gulf Cooperation Council, which includes Oman and five additional Gulf nations.

At the India-Oman Business Forum, Goyal remarked on the considerable growth potential in various sectors, including textiles, automobiles, gems and jewellery, renewable energy, auto parts, and footwear. Negotiations for the Comprehensive Economic Partnership Agreement commenced in November 2023 and reached a successful conclusion earlier this year.

This agreement is projected to enhance bilateral trade, which reached $10.61 billion in the 2024–25 fiscal year. India imported about $6.5 billion worth of goods from Oman, predominantly mineral fuels and fertilisers, while its exports were close to $4 billion. Both nations anticipate future prospects in energy transition, infrastructure project development, food security, and startups.

During this trip, Prime Minister Modi will take part in business forums, connect with the Indian community in Oman, and engage in official talks with Sultan Haitham bin Tariq. Oman stands as a vital defense partner for India in the region, with ongoing discussions regarding defense cooperation focused on aircraft maintenance support. Furthermore, India secures strategic access to the Duqm port in Oman for military logistics.

India and Oman are commemorating 70 years of diplomatic relations, showcasing their deep-rooted historical and cultural connections. The country hosts over 650,000 Indians, with many families having lived there for generations. This marks Modi's second visit to Oman, following his previous trip in 2018, signaling India's increasing emphasis on fostering relationships throughout West Asia.