India and Oman have signed a comprehensive economic partnership agreement aimed at boosting bilateral trade and investment, as New Delhi seeks to deepen ties with the Middle East and diversify exports amid steep U.S. tariffs. Under the deal, Oman will grant zero-duty access on more than 98% of its tariff lines, covering nearly all Indian exports such as gems and jewellery, textiles, pharmaceuticals, and automobiles. In return, India will reduce tariffs on about 78% of its tariff lines, accounting for nearly 95% of imports from Oman by value. Bilateral trade between the two countries currently exceeds $10 billion annually. The relationship is strategically significant for India because Oman sits near the Strait of Hormuz, a crucial passage for global oil shipments. Prime Minister Narendra Modi said the pact would accelerate trade, strengthen investment trust, and create new opportunities across sectors. This is India’s second major trade pact this year, following one with the United Kingdom, and Oman’s first bilateral trade agreement since its 2006 deal with the United States. The agreement is also seen as a geopolitical move, helping India offset the impact of U.S. tariffs, which rose to 50% on Indian goods in August. Sensitive products such as dairy, tea, coffee, rubber, and tobacco are excluded. The deal also opens opportunities in Oman’s $12.5 billion services import market, where India currently has a modest share.
The IndiaOman Comprehensive Economic Partnership Agreement is a significant step in advancing India’s economic and strategic objectives amidst a global trade landscape that is quite uncertain. The agreement through which India has secured near, zero duty access for most of its exports, is a way forward in market diversification for India and in countering the effect of rising tariffs imposed by the U. S. Strategically, the position of Oman close to the Strait of Hormuz enhances India’s access to a very important source of energy and a trade bottleneck. Furthermore, the pact is a clear indication of India’s deepening involvement in the Middle East and a turning point toward selective trade liberalization as a measure to strengthen economic resilience and gain geopolitical influence.