Archive · 27 Sep 2025
India and Oman FTA Faces Final Hurdles
India and Oman are close to finalizing a trade deal.
The main issue stopping the deal is Oman's policy that prefers to employ Omani citizens over foreign workers.
India wants to ensure the trade agreement won't make it harder for Indians working in Oman.
Both countries trade a lot with each other.
The deal would remove import taxes on many products.
India hopes to export more things like steel and electronics to Oman.
Oman mainly exports oil products to India.
The final deal could benefit both countries by boosting trade.
India and Oman are negotiating a free trade agreement (FTA).
A key point of contention is Oman's 'Omanisation' policy.
The FTA aims to boost market access for Indian exporters.
Bilateral trade between India and Oman was $8.9 billion in FY24.
India is concerned about potential misuse of the pact by Chinese exporters.
- Who
- India and Oman
- What
- Negotiations on a free trade agreement
- When
- Negotiations are ongoing as of September 2025
- Where
- Oman
- Why
- To diversify trade and gain stronger foothold
India's Perspective
Oman's Perspective
Omanisation Policy
India's Perspective
India is seeking flexibility in Oman's Omanisation policy to protect Indian expats.
Oman's Perspective
Oman prioritizes employment of Omani nationals, aiming to reduce reliance on foreign workers.
- Agreement Type
- Comprehensive Economic Partnership Agreement (CEPA)
- Bilateral Trade (FY24)
- $8.9 billion
- India's Concerns
- Oman's 'Omanisation' policy
- India's Exports
- Petroleum products, iron, steel, rice
- India's Imports
- Petroleum products, urea
- Oman's Population
- Approximately 9 lakh Indian expats