Trade pact with Oman strengthens India’s energy security: Experts
The trade agreement between the two countries was implemented on June 1.
“Firstly, it strengthens India’s energy and economic security in an unstable region. Oman has long been one of India’s most reliable partners in the Gulf,” said Shishir Priyadarshi, Chairman of CRF think tank. he said.
Also read: India and Oman free trade agreement comes into effect
He added that deeper economic integration with Oman helps create a more stable and predictable framework for a relationship that is vital to India’s energy needs, as India remains heavily dependent on imported oil, gas and petrochemical products.
The US-Iran war and subsequent closure of the Strait of Hormuz led to disruptions in cross-sector supply chains, including agricultural products and energy products.
Oman can also serve as a manufacturing, logistics and re-export hub for Indian businesses to West Asia. “So, the importance of this free trade agreement is bigger than bilateral trade numbers. It is about securing critical economic relationships, creating new opportunities for Indian industry and signaling that India plans to be a leading player in shaping the next phase of global trade and connectivity.” added Priyadarshi.
Echoing similar views, International trade expert and Chairman of Hi-Tech Gears, Deep Kapuria, said that the implementation of the trade agreement will help India expand its market share not only in Oman but in the entire West Asian region.
“With zero-duty market access, streamlined regulatory procedures and reduced compliance requirements for all exports to Oman from the date of signing of this trade agreement, Indian exporters are well positioned to expand their presence across multiple product segments in Oman,” he said.
He added that although Oman is a relatively small market, it offers export opportunities in all key sectors such as engineering, pharmaceuticals, agriculture, food processing, seafood, textiles, chemicals, electronics, gemstones and jewellery.
Think tank GTRI said the trade deal with Oman is of strategic importance for India as most of Muscat’s coastline lies outside the Strait of Hormuz, unlike other Gulf countries, ensuring it remains a reliable trade and energy gateway for India even during regional conflicts, disruptions or geopolitical instability.
Also read: India-Oman trade deal makes it easier for Indian workers to be hired by domestic investors in Muscat
India’s exports to Oman stood at around US$4 billion in fiscal 2026. These exports included refined petroleum products such as petroleum (US$781 million) and naphtha (US$746 million), followed by calcined alumina (US$277 million), iron and steel products (US$230 million), machinery (US$178 million) and rice (US$167 million).
On the other hand, India imported goods worth $7.2 billion from Oman in 2025-26. The majority of these imports consist of crude oil ($1.6 billion), liquefied natural gas ($1.2 billion) and fertilizer ($843 million).
