Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Content: India and Oman signed Comprehensive Economic Partnership Agreement with Oman providing duty-free access to 98.08% tariff lines covering 99.38% of India’s exports; deal benefits labor-intensive sectors.
More in News:
- India offered liberalized tariffs on 77.79% of total tariff lines covering 94.81% of imports from Oman; deal includes merchandise tariff removal and service sector concessions including worker mobility benefits comprehensively.
- First bilateral agreement Oman signed with any country since US deal in 2006; second deal India signed with Gulf Cooperation Council country after UAE in February 2022 agreement.
- PM Modi stated CEPA will “infuse India-Oman partnership with renewed faith and energy”, giving trade “new vigour and trust” for investments, opening “doors of new opportunities” in every sector comprehensively.
About the Relationship
- Strategic Importance and Overview
- The Sultanate of Oman is a strategic partner of India in West Asia.
- Oman is an important interlocutor for India in GCC, Arab League, and IORA forums.
- India and Oman share strong linkages rooted in geography, history, and cultural exchanges.
- Bilateral relations are described as warm, stable, and cordial.
Diplomatic Engagement
-
-
- Diplomatic relations between India and Oman were established in 1955.
- The relationship was elevated to a Strategic Partnership in 2008.
- High-level visits have been frequently exchanged between both countries.\
- Prime Minister Narendra Modi visited Oman in February 2018.
-
Economic and Commercial Relations
- Both countries accord high priority to strengthening economic cooperation.
- Economic engagement is reviewed through the Indo–Oman Joint Commission Meeting (JCM).
- Bilateral trade reached US$ 9.9 billion during 2021–2022.
-
-
-
- India exported $4.06 billion to Oman in 2024-25 (0.93% of total exports); imported $6.5 billion from Oman (0.91% of total imports) showing balanced bilateral trade relationship between nations.
-
-
- India’s Major Exports to Oman
-
-
- Key exports include mineral fuels and petroleum distillation products.
- Other exports comprise textiles, machinery, and electrical equipment.
- India exports chemicals, iron and steel, and related industrial products.
- Agricultural exports include tea, coffee, spices, rice, and meat products.
- Seafood also constitutes an important export item.
-
- India’s Major Imports from Oman
-
-
- Imports from Oman include urea and liquefied natural gas (LNG).
- Other major imports are polypropylene and lubricating oil.
- India imports dates and chromite ore from Oman.
-
- Investment Cooperation
-
-
- The Oman–India Joint Investment Fund (OIJIF) is a 50:50 joint venture.
- It is jointly promoted by State Bank of India and Oman’s SGRF.
- Indian companies have invested in iron and steel, cement, and fertilisers.
- Investments also cover textiles, cables, chemicals, and automotive sectors.
-
- Indian Community in Oman
-
- Oman hosts around 9 lakh Indians as of 2023.
- The Basic Law of Oman guarantees freedom of religious worship.
- The Hindu merchant community maintains two temples, including one over a century old.
- The community also has dedicated cremation grounds, reflecting social acceptance.