Oman FTA Sealed, India Gets Zero-Duty Access On Over 98% Of Tariff Lines
The agreement was signed during Prime Minister Narendra Modi's four-day, three-nation visit.
India and Oman inked a free trade agreement on Thursday in Muskat in order to increase economic cooperation between the two nations. Under the FTA, Oman has offered "zero-duty access" to on 98.08% of its tariff lines, covering 99.38% of India’s exports to the country.
The agreement was signed during Prime Minister Narendra Modi's four-day, three-nation visit.
Bilateral trade between the two nations amounted to $8.947 billion in fiscal year 2024 and increased to $10.613 billion in fiscal 2025.
According to the agreement, all major labour-intensive sectors including gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles will receive full tariff elimination.
Notably, gold and silver bullion have also been excluded.
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India is offering Oman tariff liberalisation on 77.79% of its total tariff lines, which includes 94.81% of India’s imports from Oman by value.
The products which are of export interest to Oman but may be sensitive to the interests of local producers will be subject to a tariff-rate quota based liberalisation.
Sensitive products excluded by India without offering any concessions were mostly agricultural, such as including dairy, tea, coffee, rubber, and tobacco products.
Oman has also offered an enhanced mobility framework for Indian professionals. It further hiked the quota for intra-corporate transferees from 20% to 50%.
Furthermore, the deal also addresses non-tariff barriers persisting despite tariff concessions between the two nations.
The FTA also opens up 100% foreign direct investment by Indian companies in Oman, in various services sectors.
The deal also extends stay for contractual workers from 90 days to two years, with a two-plus year extension. The pact provides for more liberal entry and stay for skilled workers in accountancy, taxation, architecture, medical and allied services.
