India Locks Trade Agreement with Oman
The timing proves critical as New Delhi simultaneously navigates tense trade negotiations with the US, which represents India's most valuable export destination.
Indian Prime Minister Narendra Modi declared at the India-Oman Business Summit in Muscat: "Today, we are taking such a historic decision, the echo of which will be heard for many decades to come."
Modi continued: "Comprehensive Economic Partnership Agreement that is, CEPA, will give our partnership new confidence and new energy in the 21st century. This is a blueprint of our shared future. It will boost our trade… opening new doors to opportunities in every sector."
The pact guarantees duty-free market access for 98% of Indian exports—encompassing textiles, agricultural products, and leather merchandise—entering Oman.
In exchange, India will slash import duties on Omani goods such as dates, marble, and petrochemical commodities.
New Delhi has additionally negotiated complete tariff removal for crucial employment-heavy industries, including gems and jewelry, textiles, agricultural and engineering goods, plus automotive products, a news agency confirmed.
Trade between India and Oman reached $10.5 billion throughout 2024-25.
India previously inked trade agreements with Mauritius in February 2021, the UAE in February 2022, Australia in April 2022, the European Free Trade Association in February 2024, and the United Kingdom in July this year.
New Delhi currently faces difficult negotiations with the US, which imposed 50% tariffs on the South Asian nation last August—half designated as penalty duties targeting India's purchases of Russian oil.
Earlier this month, US President Donald Trump warned of imposing further tariffs on India, claiming the country is dumping rice into the US.
New Delhi simultaneously pursues a preferential trade arrangement with Mexico aimed at offsetting potential tariff increases reaching 50%, alongside discussions with approximately a dozen additional nations or trade organizations.
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