India-Oman Trade Pact From June 1 To Support $2 Trillion Export Goal: Piyush Goyal

The free trade agreement between India and Oman will come into effect from June 01, with India targeting to export items worth $2 trillion over the next five years, Commerce Minister Piyush Goyal said.

Goyal also pointed out that several FTAs with other countries will soon be implemented, whose legal ratifications are in process.

Speaking at an event on Monday, May 18, Goyal said India is targeting exports worth $2 trillion over the next five years, while pegging the overall exports target for FY27 at $1 trillion.

Goyal reaffirmed that India continues to be a bright spot amid global geopolitical and economic uncertainties since the Ukraine war, which started in 2022.

What Lies For India?

Free Trade Agreement (FTA) with Oman will lead India to cut duties on about 80.08

per cent of Oman’s tariff lines, covering 95 per cent of imports from Oman. For sensitive sectors, the access will be mainly through tariff-rate quotas.

India’s total trade with Oman stood at $10.61 billion in 2024-25, a growth of 18.6 per cent on-year.

India and Oman signed the Comprehensive Economic Partnership Agreement (CEPA) to bring together trade in goods and services, investment, professional mobility, and regulatory cooperation under a single, coherent framework aimed at deepening bilateral economic integration.

Under the CEPA, India secures 100 per cent duty-free market access for its exports to Oman, covering 98.08 per cent of Oman’s tariff lines and accounting for 99.38 per cent of India’s trade value, based on the average for 2022–23. All zero-duty concessions apply from the first day of the agreement’s entry into force, providing immediate certainty to exporters.

Presently, only 15.33 per cent of India’s export value and 11.34 per cent of tariff lines (2022–24 average) enters the Omani market at zero duty under the MFN (Most Favored Nation) regime. With CEPA, Indian exports to Oman that earlier faced duties of up to 5 per cent, valued at around USD 3.64 billion, are expected to gain significantly from improved price competitiveness.