New Delhi: India has signed a trade agreement with Oman as part of its broader strategy to cushion the impact of rising US tariffs and fast-track free trade agreements (FTAs) with key partners, officials said on Tuesday.
The pact, which focuses on easing market access, reducing tariffs on select goods, and strengthening cooperation in services and investment, comes amid growing uncertainty in global trade triggered by protectionist measures in major economies, including the United States. New Delhi is seeking to diversify export destinations and secure stable trade partnerships to protect domestic industries and boost outbound shipments.
According to government sources, the agreement with Oman is expected to benefit Indian exporters in sectors such as engineering goods, textiles, pharmaceuticals, food products, and chemicals, while also opening opportunities for greater collaboration in energy, logistics, and technology. Oman, a strategic partner in the Gulf region, serves as a key gateway for Indian businesses to West Asia and Africa.
“The agreement reflects India’s intent to deepen economic engagement with trusted partners and reduce vulnerability to unilateral tariff actions,” an official familiar with the negotiations said. “It also signals our commitment to concluding high-quality trade deals at a faster pace.”
The move aligns with India’s renewed push to conclude and upgrade FTAs with countries and blocs including the United Kingdom, the European Union, the Gulf Cooperation Council (GCC), and Australia. In recent months, the government has stepped up negotiations to ensure Indian exporters remain competitive amid shifting global trade dynamics.
Trade experts note that closer ties with Oman could also strengthen supply chains and enhance energy security, given the country’s importance as a crude oil and LNG supplier. Additionally, improved trade facilitation measures are expected to benefit India’s large expatriate community in Oman by promoting services trade and professional mobility.
India and Oman have traditionally shared strong diplomatic and economic relations, with bilateral trade crossing several billion dollars annually. The new deal is likely to further boost two-way trade and investment flows, officials said.
As global trade tensions persist, New Delhi’s strategy of expanding its FTA network is seen as a key pillar of its long-term export growth and economic resilience plan.
