India, Oman Seal Trade Deal to Deepen Middle East Ties

India on Thursday signed a comprehensive economic partnership agreement with Oman to strengthen bilateral trade and investment, as New Delhi seeks to deepen ties in the Middle East and diversify exports amid higher US tariffs.

Under the agreement, Oman will provide zero-duty access on more than 98 percent of its tariff lines, effectively covering almost all Indian exports, including gems and jewellery, textiles, pharmaceuticals and automobiles, according to India’s trade ministry.

In return, India will reduce tariffs on around 78 percent of its tariff lines, accounting for nearly 95 percent of imports from Oman by value.

Bilateral trade between the two countries currently exceeds $10 billion annually. Oman holds strategic importance for India as it sits at the entrance to the Strait of Hormuz, a key global route for oil shipments.

Prime Minister Narendra Modi said the pact would “set a new pace for trade, strengthen trust in investments and open doors to new opportunities across sectors.”

The agreement is India’s second major trade pact this year, following one signed with the United Kingdom. It is expected to help Indian exporters access new markets as they seek to offset the impact of steep US tariffs.

For Oman, the deal marks its first bilateral trade agreement since a 2006 pact with the United States.

Trade experts noted that the agreement carries both economic and geopolitical significance, enhancing India’s regional presence. Industry leaders said gem and jewellery exports alone could rise from about $35 million to $150 million over the next three years.

Several sensitive products, including dairy, tea, coffee, rubber and tobacco, have been excluded from the agreement. The pact also opens opportunities in Oman’s $12.5 billion services import market, where India currently holds a modest share