Major boost for trade in electronics, marble, services sector in India-Oman FTA: Commerce Secy

India has secured its sixth Free Trade Agreement (FTA) in six years under the leadership of Union Minister of Commerce and Industry, Piyush Goyal. The latest FTA, signed with Oman, marks a significant milestone, offering India new opportunities in various sectors. 

Commerce Secretary Rajesh Agrawal highlighted that one of the biggest gains from this FTA comes from the services sector, with Oman opening up 100% Foreign Direct Investment (FDI) for India. This move is expected to boost India's services exports and enhance business collaboration between the two nations. 

India became the second country to sign a bilateral treaty with Oman, after the United States. Under this agreement, both countries will further deepen their trade and economic ties. One of the notable features of the deal is the Mutual Recognition Agreement (MRA) on Halal certification, a key step to facilitating smoother trade in halal-certified products between the two nations, Agrawal said. 

Oman will also become a critical partner for India in the electronics sector, serving as a strong base for exporting electronic goods to the region, the commerce secretary added. At the same time, India will continue to import vital petrochemical and energy products from Oman, strengthening its energy security, he said. 

Commerce Minister Piyush Goyal said that India’s focus remains on FTAs with developed nations, aiming not to compete but to complement their markets. He pointed out that all of India’s six FTAs have been with developed countries, reflecting a strategy aimed at enhancing India’s global trade position. 

“Access to marble blocks from Oman will also be a significant benefit for us,” Goyal added, highlighting the importance of this resource for the Indian construction and manufacturing sectors. 

Currently, around 7 lakh Indians are working in Oman, contributing approximately Rs 18,000 crore in remittances to India. This strong presence of the Indian workforce in Oman underlines the deep-rooted people-to-people ties between the two nations. “Even if Oman changes its laws, it will not change the binding agreement of employment opportunities for Indians there,” the minister added.

Looking ahead, Oman has expressed interest in collaborating with India in sectors such as food processing and space technology, paving the way for new avenues of cooperation. 

Speaking on the India-Oman Comprehensive Economic Partnership Agreement (CEPA), Goyal said the aggrement with Oman benefits India’s farmers, artisans without hurting MSMEs.

"There is a lot of interest in Oman to collaborate with India due to their large land bank. Large steel investment for producing green scheme is something we are discussing. Some Indian manufacturers are looking at setting up battery manufacturing in Oman," Goyal added.

PM Modi was conferred with the Order of Oman, the Sultanate’s highest civilian award, during his two-day visit to the Gulf nation. During the visit, India and Oman also signed a landmark free trade agreement, marking a significant boost to bilateral ties. Oman is the final leg of PM Modi’s three-nation tour, which also included Jordan and Ethiopia.