by supplychainreport
India and Oman have signed a comprehensive economic partnership agreement aimed at strengthening bilateral trade and expanding market access, officials said Thursday. The signing took place in Muscat with Indian Prime Minister Narendra Modi and Oman’s Sultan Haitham bin Tarik in attendance.
The agreement provides Indian goods zero-duty access on 98.08% of Oman’s tariff lines, covering sectors such as engineering goods, textiles, leather, pharmaceuticals, and agricultural products. Oman will also benefit from tariff liberalization on 77.79% of India’s tariff lines, encompassing nearly 95% of imports from Muscat.
This deal marks India’s second free trade agreement in the past six months, following the agreement with the United Kingdom in May. Trade officials highlighted that comprehensive trade agreements are central to India’s strategy to deepen integration into global supply chains, expand export growth, and create employment opportunities.
“India is strategically using free trade agreements to diversify export markets and support businesses amid global trade uncertainties,” said trade analyst Ajay Srivastava.
India is also in advanced negotiations with the European Union, New Zealand, Chile, and other partners. Currently, India has 15 free trade agreements covering 26 countries and six preferential trade agreements, with talks ongoing with more than 50 potential partners.
Trade Secretary Rajesh Agarwal said India expects continued progress on ongoing negotiations in the coming year, while balancing the need to protect domestic industries and farmers.
The Oman deal underscores India’s broader effort to strengthen economic ties with Middle Eastern and global partners, ensuring predictable trade rules and reduced tariffs for exporters. Recent agreements with the UAE, Australia, and the United Kingdom have further solidified India’s position as an active participant in international trade.
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