How an India-Oman FTA Will Further Strengthen the Bilateral Relationship

In the last few years, India’s relationship with the Gulf countries (GCC) has grown a lot—both in business and in strategy.

. Millions of Indians live and work in the Gulf region.

In fact, over 9 million Indians are living there right now. That’s more than 60% of all Indians living abroad.

So, it’s not just about trade or politics—there are strong human connections too.

Today, India’s ties with the Gulf are deep and wide. They are no longer focused on just one area.

Because of big changes in the world, in the Middle East, and in South Asia, both sides have adjusted how they work together.

The relationship now includes trade, energy, defence, technology, and more.
[19:56, 11/08/2025] alizaib: Trade between India and GCC and the India-UAE CEPA
[19:57, 11/08/2025] alizaib: In 2024–2025, India’s trade with the Gulf region (GCC) reached about $178.56 billion.

n 2024–2025, India’s trade with the Gulf region (GCC) reached about $178.56 billion.

One major reason for this growth is the Free Trade Agreement (FTA) that India signed with the UAE in 2022—also known as the Comprehensive Economic Partnership Agreement (CEPA).

This deal has given a big boost to trade between the two countries.

By 2025, India-UAE trade crossed $100 billion, up from around $72.87 billion in 2022.

This was actually the main goal of the FTA—to take trade past the $100 billion mark and expand it into new sectors, not just traditional ones.

In India, many groups—like state governments, business chambers, and trade bodies—have been actively supporting this growth since the FTA was signed.

At the same time, UAE business groups have also shown strong interest in deepening trade and investment with India.

India-Oman ties

India has good relations with Oman, another member of the Gulf Cooperation Council (GCC).
Like other Gulf countries, Oman is home to a large Indian community of over 6,50,000 people.

In December 2023, the Sultan of Oman, His Majesty Sultan Haitham bin Tarik, visited India for three days.
During this visit, both countries released a joint vision document called “A Partnership for the Future”.

The document listed several areas where India and Oman plan to work together, such as:

Maritime cooperation and better connectivity

Energy security and green energy

Trade and digital payment

India and Oman are close to finalizing a Free Trade Agreement (FTA), also called a Comprehensive Economic Partnership Agreement (CEPA).
The deal is now being translated into Arabic. After that, the cabinets of both countries will approve it, and it will be signed.

Talks for this agreement started in 2023.
If signed, it could help boost India’s exports such as textiles, farm products, plastics, auto parts, steel, and electronics.
Tariffs on these items could drop from 5% to zero.

Another key topic in the talks was the issue of Indian workers in Oman.
Oman has an “Omanisation” policy, which requires companies to hire a minimum number of Omani nationals.
India requested safeguards to ensure Indian workers are not negatively affected by this policy.

 

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