Union Commerce and Industry Minister Piyush Goyal has announced that the newly concluded Free Trade Agreement (FTA) between India and Oman is set to create significant opportunities for Indian exporters across several core industries. The minister highlighted that the pact will be a game-changer for sectors like textiles, food processing, automobiles, and gems and jewellery.
Strategic Gateway to Wider Markets
Addressing the India-Oman Business Forum in Muscat, Minister Goyal emphasized Oman's crucial geographic position. He described the nation as a strategic gateway that provides Indian businesses with enhanced access to the markets of the Gulf Cooperation Council (GCC), Eastern Europe, Central Asia, and Africa. This expanded reach is a central benefit of the trade agreement.
Oman's Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef, reinforced the strong bilateral ties. He noted that India is already Oman's third-largest trading partner. In a significant reveal, he stated that Indian investments in Oman have tripled since 2020, reaching an impressive USD 5 billion. These investments are primarily focused on future-oriented projects in green steel, green ammonia, aluminium, and logistics.
A Milestone Pact and Historic Ties
Minister Goyal characterized the FTA as a major milestone in the relationship between the two countries. He pointed out that this agreement marks Oman's first such trade pact in nearly two decades, underscoring its importance. The minister also connected the modern agreement to a rich shared history, recalling the centuries-old maritime trade links between India and Oman.
The timing of the agreement holds additional symbolic weight. Goyal mentioned that the upcoming visit of Prime Minister Narendra Modi to Oman coincides with the 70th anniversary of the establishment of diplomatic relations between the two nations. This dual celebration is seen as a testament to the enduring and strengthening partnership.
Key Sectors Poised for Growth
The FTA is specifically designed to boost Indian exports and collaboration in a diverse set of sectors. The ministers identified several high-potential areas:
- Textiles and Apparel: Expected to gain preferential access to Omani and regional markets.
- Automobiles and Auto Components: A major Indian export strength that will find new avenues.
- Gems and Jewellery: Leveraging India's craftsmanship and Oman's market position.
- Food Processing: Opportunities for Indian agricultural and value-added food products.
- Renewable Energy & Green Products: Aligning with investments in green ammonia and steel for sustainable growth.
- Agrochemicals: Supporting agricultural productivity in the region.
The consensus among leaders and business forums is that this FTA will not only enhance bilateral trade volumes but also deepen economic integration, creating a win-win scenario for both India and Oman in the coming years.
