{"id":1448,"date":"2025-12-22T12:44:26","date_gmt":"2025-12-22T12:44:26","guid":{"rendered":"https:\/\/spmiasacademy.com\/currentaffairs\/?p=1448"},"modified":"2025-12-22T12:47:13","modified_gmt":"2025-12-22T12:47:13","slug":"india-oman-free-trade-agreement-fta-2025","status":"publish","type":"post","link":"https:\/\/spmiasacademy.com\/currentaffairs\/india-oman-free-trade-agreement-fta-2025\/","title":{"rendered":"India \u2013 Oman Free Trade Agreement (FTA), 2025"},"content":{"rendered":"\n<p>As part of a three nations tour, the Prime Minister of India visited Oman. This visit coincides with the <strong>70<\/strong><strong><sup>th<\/sup><\/strong><strong> anniversary of India-Oman diplomatic relations<\/strong> established in <strong>1955<\/strong>. Earlier he visited <strong>Ethiopia<\/strong> and <strong>Jordan<\/strong>. During his Oman visit, the Prime Minister of India has signed a <strong>Free Trade Agreement (FTA)<\/strong> with <strong>Sultan Haitham bin Tarik<\/strong>.<\/p>\n\n\n\n<p>In the last few years, India has signed many Free Trade Agreements (FTAs) which are reaping rewards for farmers, traders, and exporters. Some of them include the <strong>UK (2025)<\/strong>, <strong>EFTA (2024)<\/strong>, <strong>Australia (2022)<\/strong>, <strong>UAE (2022)<\/strong>, <strong>Mauritius (2021)<\/strong>. This expanding network of agreements highlights India\u2019s foresighted trade strategy. This strategy focuses on diversification, resilience and mutually beneficial growth.<\/p>\n\n\n\n<p>Stay updated with relevant <strong><a href=\"https:\/\/spmiasacademy.com\/currentaffairs\/\" target=\"_blank\" rel=\"noreferrer noopener\">current affairs<\/a><\/strong> crucial for UPSC, covering diplomacy, FTAs, and India\u2019s foreign policy.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img fetchpriority=\"high\" decoding=\"async\" width=\"672\" height=\"720\" src=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-33.jpeg\" alt=\"India \u2013 Oman Free Trade Agreement\" class=\"wp-image-1449\" style=\"width:840px;height:auto\" srcset=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-33.jpeg 672w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-33-280x300.jpeg 280w\" sizes=\"(max-width: 672px) 100vw, 672px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">India &#8211; Oman Free Trade Agreement (FTA), 2025:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The India-Oman Free Trade Agreement (FTA) aims to <strong>deepen the bilateral strategic partnership<\/strong> between <strong>India <\/strong>and <strong>Oman<\/strong>.<\/li>\n\n\n\n<li>Both leaders exchanged views on a wide range of topics, including:\n<ul class=\"wp-block-list\">\n<li>Defence and security<\/li>\n\n\n\n<li>Trade and investment<\/li>\n\n\n\n<li>Energy, agriculture, and technology<\/li>\n\n\n\n<li>Cultural exchanges and people-to-people contacts<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>A milestone achievement in this partnership is the signing of the <strong>Comprehensive Economic Partnership Agreement (CEPA)<\/strong>, which strengthens the India-Oman strategic ties.<\/li>\n\n\n\n<li>This agreement marks <strong>Oman\u2019s second FTA<\/strong> with an individual country and the first in over 20 years.<\/li>\n\n\n\n<li>Oman has offered <strong>zero-duty access on 98% of its tariff lines<\/strong>, which is expected to generate <strong>$2 billion<\/strong> worth of exports in the near-term. Beneficiary sectors include:\n<ul class=\"wp-block-list\">\n<li>Gems and jewellery<\/li>\n\n\n\n<li>Textiles, leather, and footwear<\/li>\n\n\n\n<li>Sports goods, plastics, and furniture<\/li>\n\n\n\n<li>Agricultural and engineering products<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>This is <strong>India\u2019s second FTA<\/strong> with a <strong>Gulf Cooperation Council (GCC)<\/strong> country, after the <strong>UAE<\/strong>.<\/li>\n\n\n\n<li>India has <strong>liberalized tariffs on 77.79%<\/strong><strong>of its tariff lines<\/strong>, with exceptions made for sensitive sectors such as:\n<ul class=\"wp-block-list\">\n<li>Agricultural products (dairy, tea, coffee, rubber, tobacco)<\/li>\n\n\n\n<li>Gold, silver, bullion, and jewellery<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The agreement includes provisions for the services sector:\n<ul class=\"wp-block-list\">\n<li>Oman\u2019s increase in the quota for <strong>Intra-Corporate Transferees<\/strong> from 20% to 50%.<\/li>\n\n\n\n<li>Enhanced cooperation on <strong>energy transition<\/strong>, including <strong>green hydrogen<\/strong>, <strong>renewable energy<\/strong>, and <strong>infrastructure development<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Oman<\/strong> has also <strong>extended the permitted stay<\/strong> duration for <strong>Contractual Services Suppliers<\/strong>, from <strong>90 days to two years<\/strong>, with the possibility of a further two-year extension.<\/li>\n\n\n\n<li>The agreement allows for <strong>100% Foreign Direct Investment (FDI)<\/strong> <strong>by Indian companies<\/strong> in major services sectors in Oman.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Significance of the Comprehensive Economic Partnership Agreement (CEPA):<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthening Trade Cooperation:<\/strong> The CEPA aims to enhance and solidify trade relations between India and Oman, fostering growth across key sectors.<\/li>\n\n\n\n<li><strong>Promoting Trade Diversification:<\/strong> It supports diversification in trade, while simultaneously improving the resilience of supply chains between the two countries.<\/li>\n\n\n\n<li><strong>Expanding Market Access:<\/strong> The agreement opens up broader market access for Indian exporters, especially in the West Asian region, helping India expand its trade footprint.<\/li>\n\n\n\n<li><strong>Injecting New Confidence:<\/strong> By infusing fresh energy and confidence into the India-Oman partnership, the CEPA is set to revitalize bilateral ties, particularly for the 21st century.<\/li>\n\n\n\n<li><strong>Creating Momentum for Growth:<\/strong> The agreement will create new opportunities for trade, investment, and innovation, paving the way for increased growth and job creation, especially benefiting the youth.<\/li>\n\n\n\n<li><strong>Facilitating Professional Engagement:<\/strong> The CEPA provides more liberal entry and stay conditions for skilled professionals in vital sectors such as accountancy, taxation, architecture, and medical services. This provision will promote deeper and seamless professional exchanges between the two countries.<\/li>\n\n\n\n<li><strong>Encouraging Investment and Economic Diversification:<\/strong> The agreement is poised to stimulate investments and catalyze economic diversification, ultimately enhancing the economic growth of both India and Oman.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">India \u2013 Oman Relations:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oman is the <strong>3rd largest export destination for India<\/strong> among the Gulf Cooperation Council countries.<\/li>\n\n\n\n<li>India \u2013 Oman bilateral trade was about <strong>USD 10.5 billion<\/strong> (<strong>export USD 4 billion<\/strong> and <strong>imports USD 6.54 billion<\/strong>) in 2024-25.<\/li>\n\n\n\n<li>India\u2019s key imports are <strong>petroleum products <\/strong>and<strong> urea<\/strong>. These account for over <strong>70% of imports<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Other key products are <strong>propylene<\/strong> and <strong>ethylene polymers<\/strong>, <strong>pet coke<\/strong>, <strong>gypsum<\/strong>, <strong>chemicals<\/strong>,<strong> iron<\/strong> and <strong>steel <\/strong>and <strong>unwrought aluminum<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Background of India \u2013 Oman Relation:<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India<\/strong> and <strong>Oman<\/strong> are linked by geography, history, and culture and enjoy warm and cordial relations.<\/li>\n\n\n\n<li>While <strong>people-to-people contact<\/strong> between <strong>India<\/strong> and <strong>Oman<\/strong> can be traced back <strong>5000 years<\/strong>, diplomatic relations were established in <strong>1955<\/strong>.<\/li>\n\n\n\n<li>Furthermore, their relationship became a <strong>Strategic Partnership<\/strong> in <strong>2008<\/strong>.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"771\" src=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-34-1024x771.jpeg\" alt=\"India - Oman Relations\" class=\"wp-image-1450\" srcset=\"https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-34-1024x771.jpeg 1024w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-34-300x226.jpeg 300w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-34-768x578.jpeg 768w, https:\/\/spmiasacademy.com\/currentaffairs\/wp-content\/uploads\/2025\/12\/image-34.jpeg 1080w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">India &#8211; Oman Relations: Key Dimensions:<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Political Relations:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Oman<\/strong> is a <strong>crucial pillar of India&#8217;s West Asia Policy<\/strong> and its oldest regional strategic partner.\u00a0<\/li>\n\n\n\n<li>The political engagement between the two countries has increasingly taken on a more strategic shape.\u00a0<\/li>\n\n\n\n<li>The historical <strong>India-Oman bilateral ties<\/strong> were transformed into a <strong>strategic partnership<\/strong> in November <strong>2008<\/strong>.<\/li>\n\n\n\n<li>India and Oman have maintained steady diplomatic contact through regular high-level engagements.<\/li>\n\n\n\n<li>As a mark of special friendship, India extended an invitation to the sultanate of Oman to participate in the G20 Summit and meetings as a guest country during India&#8217;s Presidency in 2023.<\/li>\n\n\n\n<li>Oman actively participated in more than 150 meetings of the Working Groups, and 9 Omani Ministers travelled to India to participate in G20 Ministerial Meetings.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Bilateral Agreements &amp; Institutional Mechanisms:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>MoUs across <strong>digital payments, health, tourism, IT, agriculture, civil aviation, manpower, culture.<\/strong><\/li>\n\n\n\n<li>Agreements on <strong>military cooperation, outer space, maritime transport, standards &amp; measures.<\/strong><\/li>\n\n\n\n<li>Legal frameworks: <strong>Extradition, Criminal &amp; Civil Judicial Cooperation.<\/strong><\/li>\n\n\n\n<li><strong>DTAA amendment protocol<\/strong> signed (Jan 2025).<\/li>\n\n\n\n<li>Visa exemption for <strong>diplomatic and official passport holders.<\/strong><\/li>\n\n\n\n<li>Cooperation between:\n<ul class=\"wp-block-list\">\n<li>Oman NDC &amp; India\u2019s IDSA<\/li>\n\n\n\n<li>FSI &amp; Omani Diplomatic Institute<\/li>\n\n\n\n<li>CAG of India &amp; State Audit Institution of Oman<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Cultural MoU &#8211; ICCR Chair of Hindi at Dhofar University.<\/strong><\/li>\n\n\n\n<li>Agreement on <strong>employment of accompanying spouses of officials.<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Defence &amp; Security Cooperation:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oman is <strong>India\u2019s closest defence partner in the Gulf<\/strong>.<\/li>\n\n\n\n<li>Only Gulf country with <strong>joint exercises of all three Indian armed forces<\/strong>.<\/li>\n\n\n\n<li>Strong cooperation in <strong>Indian Ocean maritime security<\/strong>.<\/li>\n\n\n\n<li>High-level defence visits are exchanged regularly.<\/li>\n\n\n\n<li><strong>India\u2013Oman Defence Industrial Seminar<\/strong> held (Sept 2023).<\/li>\n\n\n\n<li>Regular participation in <strong>AERO India<\/strong> exhibitions.<\/li>\n\n\n\n<li><strong>13th India-Oman Joint Military Cooperation Committee<\/strong> held in New Delhi (Nov 2025).<\/li>\n\n\n\n<li><strong>6th Coast Guard High-Level Meeting<\/strong> held in Muscat (Apr 2025).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Economic &amp; Trade Relations:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The value of India-Oman Bilateral trade:<\/strong>\n<ul class=\"wp-block-list\">\n<li>US$ 8.95 bn (FY 2023\u201324)<\/li>\n\n\n\n<li>US$ 10.61 bn (FY 2024\u201325)<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Oman:<\/strong>\n<ul class=\"wp-block-list\">\n<li>India\u2019s <strong>28th largest trading partner (2024-25).<\/strong><\/li>\n\n\n\n<li><strong>29th export market<\/strong>, <strong>25th import source (2024-25).<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India:<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>4th largest source<\/strong> of Oman\u2019s non-oil imports (2024-25).<\/li>\n\n\n\n<li><strong>3rd largest market<\/strong> for Oman\u2019s non-oil exports (2024-25).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Over <strong>6,000 India\u2013Oman joint ventures<\/strong> in Oman.<\/li>\n\n\n\n<li>Cumulative FDI from Oman to India: <strong>US$ 605.57 million.<\/strong><\/li>\n\n\n\n<li><strong>India\u2019s Exports to Oman:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Petroleum products, aluminium oxide, rice.<\/li>\n\n\n\n<li>Machinery, boilers, electrical equipment.<\/li>\n\n\n\n<li>Aircraft, plastics, iron &amp; steel, ceramics.<\/li>\n\n\n\n<li>Cosmetics and beauty products.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s Imports from Oman:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Crude oil and LNG (major share)<\/li>\n\n\n\n<li>Fertilizers (urea), ammonia, sulphur<\/li>\n\n\n\n<li>Organic chemicals, iron ore<\/li>\n\n\n\n<li>Stone, lime, plastics, aircraft<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Cultural Cooperation:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Relations rooted in <strong>centuries-old maritime &amp; trade links.<\/strong><\/li>\n\n\n\n<li><strong>Gandhi Peace Prize 2019<\/strong> awarded to late <strong>Sultan Qaboos.<\/strong><\/li>\n\n\n\n<li>\u2018<strong>Oman Collection\u2019 digitization project (May 2024): <\/strong>Digitized 7,000+ archival records and documents from 1838 onwards.<\/li>\n\n\n\n<li>\u2018<strong>Mandvi to Muscat<\/strong>\u2019 lecture series focused on Indian diaspora history, participation of global scholars.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Indian Community in Oman:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indian population: <strong>~6.77 lakh<\/strong> (2025).<\/li>\n\n\n\n<li>Work visa holders: <strong>~5.2 lakh<\/strong><\/li>\n\n\n\n<li>OCI card holders: <strong>2,052<\/strong><\/li>\n\n\n\n<li>Indian professionals across <strong>health, engineering, education, finance.<\/strong><\/li>\n\n\n\n<li><strong>22 Indian schools<\/strong> serving ~48,000 students.<\/li>\n\n\n\n<li>Active Indian Social Clubs in <strong>Muscat, Salalah, Sohar, Sur.<\/strong><\/li>\n\n\n\n<li><strong>Religious facilities:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Hindu temples, cremation grounds.<\/li>\n\n\n\n<li>Churches and Gurudwaras permitted.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Notable contributions by Overseas Indians and NRIs for strengthening bilateral ties are recognised through <strong>Pravasi Bharatiya Samman Awards<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion:<\/h2>\n\n\n\n<p>In conclusion, the India-Oman Free Trade Agreement (FTA) marks a significant landmark in strengthening the bilateral strategic partnership between the two countries. With a focus on trade diversification, economic growth, and mutual cooperation in key sectors like defense, energy, and agriculture, the agreement opens up new opportunities for India and Oman. By fostering closer professional and cultural ties, the India &#8211; Oman FTA is poised to enhance economic resilience, create employment opportunities, and ensure sustainable development for both countries. This strategic partnership not only supports India\u2019s growing influence in West Asia but also promotes long-term growth and prosperity for both nations.<\/p>\n\n\n\n<p>Such international developments are comprehensively covered at the <strong><a href=\"https:\/\/spmiasacademy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Best UPSC Coaching in Guwahati<\/a><\/strong> for aspirants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sources:<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.indemb-oman.gov.in\/eoi.php?id=bilateral\">https:\/\/www.indemb-oman.gov.in\/eoi.php?id=bilateral<\/a><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ:<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1766406499939\"><strong class=\"schema-faq-question\"><strong>What is the India-Oman Free Trade Agreement (FTA)?<\/strong><\/strong> <p class=\"schema-faq-answer\">The India-Oman Free Trade Agreement (FTA), signed during India&#8217;s Prime Minister&#8217;s visit to Oman. It aims to enhance bilateral trade relations, improve market access, and boost investment between the two countries. It focuses on sectors like trade, defense, agriculture, and technology.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766406522726\"><strong class=\"schema-faq-question\"><strong>How does the India-Oman FTA benefit Indian exporters?<\/strong><\/strong> <p class=\"schema-faq-answer\">The agreement offers Indian exporters enhanced market access, including zero-duty access on 98% of Oman\u2019s tariff lines. It is expected to generate significant export growth in sectors like gems, textiles, and agricultural products, boosting India\u2019s trade with Oman.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766406543034\"><strong class=\"schema-faq-question\"><strong>What are the key sectors of cooperation between India and Oman under the FTA?<\/strong><\/strong> <p class=\"schema-faq-answer\">The India-Oman FTA covers a wide range of sectors, including trade and investment, defense, agriculture, energy, technology, and cultural exchanges. It also emphasizes professional engagement, particularly in sectors like accountancy, taxation, and medical services.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766406561194\"><strong class=\"schema-faq-question\"><strong>How does the FTA support economic growth and job creation?<\/strong><\/strong> <p class=\"schema-faq-answer\">The India-Oman FTA is designed to stimulate economic diversification and create new opportunities for trade, investment, and innovation. This, in turn, will contribute to growth, employment, and opportunities for youth in both countries.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1766406588245\"><strong class=\"schema-faq-question\"><strong>What are the provisions for skilled professionals under the India-Oman FTA?<\/strong><\/strong> <p class=\"schema-faq-answer\">The agreement facilitates liberal entry and stay conditions for skilled professionals in key sectors such as accountancy, architecture, and medical services. It includes provisions for 100% Foreign Direct Investment (FDI) in major services sectors, enhancing professional engagement between India and Oman.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>As part of a three nations tour, the Prime Minister of India visited Oman. This visit coincides with the 70th anniversary of India-Oman diplomatic relations<\/p>\n","protected":false},"author":2,"featured_media":1451,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India-Oman FTA Trade Deal Key Highlights<\/title>\n<meta name=\"description\" content=\"Learn the major highlights of the India-Oman FTA, including market access, tariff cuts, strategic gains, and economic growth prospects.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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