DUBAI/NEW DELHI — India sealed a comprehensive economic partnership agreement with Oman on Thursday, slashing tariffs to supercharge bilateral trade exceeding $10 billion annually and fortify New Delhi’s Middle East foothold amid escalating U.S. trade barriers.
The deal grants Indian exporters zero-duty access to over 98% of Oman’s tariff lines, encompassing key sectors like gems and jewellery, textiles, pharmaceuticals, and automobiles, according to India’s trade ministry. In reciprocity, India will reduce tariffs on about 78% of its lines, spanning nearly 95% of Oman’s imports by value.”This pact will set a new pace for our trade, add new trust to our investments, and open doors to new opportunities across sectors,” Prime Minister Narendra Modi declared during an address in Oman.
Marking India’s second such agreement this year after the UK pact, the move accelerates diversification as U.S. President Donald Trump recently hiked duties on Indian goods to a global-high 50% including a 25% retaliatory levy over India’s Russian oil purchases, derailing stalled talks. Oman, securing its first bilateral deal since a 2006 U.S. accord, serves as a strategic gateway for India via the Strait of Hormuz, a vital artery for global oil shipments between Oman and Iran.
Trade experts hail the pact’s dual economic and geopolitical edge. “It’s as much about regional presence as tariffs,” noted Ajay Srivastava, founder of the Global Trade Research Initiative. Gems and jewellery exports could surge from $35 million to $150 million in three years, predicts Kirit Bhansali, chairman of the Gems & Jewellery Export Promotion Council. Sensitive Indian items like dairy, tea, coffee, rubber, and tobacco remain excluded. The agreement also eyes Oman’s $12.5 billion services import market, where India holds just 5.3% share, promising fresh avenues for expansion.