India and Oman put free trade pactput free trade pact into force
India and Oman put their free trade agreement into force on Monday, with early shipments moving under lower or zero tariffs and officials in New Delhi and Muscat highlighting closer trade ties.
The deal matters because Oman sits outside the Strait of Hormuz bottleneck on much of its coast, giving India a useful option as it looks to secure energy and supply chains.
Indian Government
Indian officials present the pact as a practical way to widen market access and reduce shipping risk. They also frame it as part of a broader effort to strengthen energy security and diversify import routes.
Omani Government
Oman describes the agreement as a way to expand exports and deepen economic links with a major Asian market. It has also signaled interest in supplying more petrochemicals and fertiliser under the new trade framework.
- Oman's long Arabian Sea coast makes it less dependent on the Strait of Hormuz than several of its neighbors.
- India and Oman have long-standing energy and labor links that extend well beyond trade in goods.
- Port access on both sides of the Arabian Sea has become more valuable as companies seek shorter, safer shipping routes.
