Union minister Piyush Goyal and the ambassador of Oman to India Issa Saleh Abdullah Alshibani during the India-Oman Comprehensive Economic Partnership Agreement, in New Delhi on Monday. | Photo Credit: ANI

The free trade agreement with Oman will strengthen India's energy and economic security in the volatile Gulf region, according to experts.

The trade agreement between the two countries was implemented on June 1.

"First, it strengthens India's energy and economic security in a volatile region. Oman has long been one of India's most reliable partners in the Gulf," think tank CRF President Shishir Priyadarshi said.

He added that as India remains heavily dependent on imported oil, gas and petrochemicals, deeper economic integration with Oman helps create a more stable and predictable framework for a relationship that is vital to India's energy needs.

The US-Iran war and the subsequent closure of the Strait of Hormuz have led to disruptions in supply chains across sectors, including agricultural goods and energy products.

Oman can also serve as a manufacturing, logistics and re-export hub for Indian businesses to West Asia.

"So, the significance of this free trade agreement is larger than bilateral trade numbers. It is about securing critical economic relationships, creating new opportunities for the Indian industry and signalling that India intends to be a leading player in shaping the next phase of global trade and connectivity," Priyadarshi added.

Echoing similar views, International trade expert and Hi-Tech Gears Chairman Deep Kapuria said the operationalisation of the trade pact will help India in expanding its market share not only in Oman but also in the entire West Asia region.

"With zero-duty market access for all its exports to Oman from the date of entry of this trade deal, along with streamlined regulatory procedures, reduced compliance requirements, Indian exporters are well positioned to expand their presence across multiple product segments in Oman," he said.

He added that though Oman is a relatively small market, it offers export opportunities across all key sectors such as engineering, pharma, agriculture, food processing, marine products, textiles, Chemicals, electronics, Gems and Jewellery among others.

The trade pact with Oman holds strategic significance for India, as much of Muscat's coastline lies outside the Strait of Hormuz, unlike other Gulf nations, enabling it to remain a reliable trade and energy gateway for India even during regional conflicts, disruptions, or geopolitical instability, think tank GTRI said.

Indian exports to Oman stood at nearly $4 billion in the fiscal 2026, led by refined petroleum products such as petrol ($781 million) and naphtha ($746 million), followed by calcined alumina ($277 million), iron and steel products ($230 million), machinery ($178 million) and rice ($167 million).

On the other hand, India imported $7.2 billion worth of goods from Oman in 2025-26, dominated by crude oil ($1.6 billion), liquefied natural gas ($1.2 billion) and fertilisers ($843 million).

Published on June 2, 2026