Oman–India comprehensive pact to unlock major economic gains

MUSCAT: Economists and analysts say the keenly-anticipated Comprehensive Economic Agreement between the Sultanate of Oman and the Republic of India will deepen trade and investment ties, enhance competitiveness and open new avenues in promising sectors — advancing the diversification goals of Oman Vision 2040.

They note that free trade agreements form a key pillar of Oman’s outward economic strategy, strengthening regional and global supply chains and broadening non-oil exports to attract quality investment.

Dr Habiba bint Mohammed al Mughairiyah, Assistant Professor and Head of the Business Administration Department at the University of Technology and Applied Sciences, said the deal would be a pivotal step, lowering tariffs and expanding non-oil export opportunities. She added it is expected to support GDP growth, create more space for SMEs and open new corridors in healthcare, technology and renewable energy, in turn generating jobs and reinforcing supply-chain connectivity.

Economic and financial analyst Rashid bin Abdullah al Sheidhani described the agreement as a positive turning point, citing India’s rise as a major economic power and Oman’s strategic location as a gateway between East and West. He said the pact should broaden Omani export potential, stimulate GDP and back diversification efforts, while enabling knowledge transfer from India and widening market access for Omani firms. He projected that bilateral trade could exceed RO 5 billion in the future, lifting non-oil activity and job creation — an outcome that reflects the success of Oman’s economic diplomacy.

Writer and economic journalist Mohammed bin Ali al Araimi said the agreement’s strategic value lies in reducing tariffs, facilitating trade flows and energising key sectors including oil and refined products, textiles, pharmaceuticals, metals and services. He expects increased joint investment in infrastructure, energy and tourism, stronger maritime connectivity and greater use of Omani ports as a regional re-export hub, alongside development in digital trade and intellectual property protection.

Legal adviser and economist Dr Qais bin Dawood al Sabai, a member of the Oman Economic Association, underlined the deep historical roots of Oman–India commerce. He said India’s vast productive capacity and growing consumer base open wide horizons for partnership with Oman, positioning the relationship as a renewed model of economic integration based on mutual interests.

He added that the pact would be a watershed establishing a strategic partnership with international reach. It would also reinforce maritime trade links — leveraging Oman’s strategic geography and globally connected ports — while unlocking new investment flows across finance, trade and investment.

Analysts conclude the agreement is poised to diversify revenues, attract foreign direct investment, expand the private sector’s role, create jobs for young Omanis and lower consumer prices through tariff reductions — consolidating the Sultanate of Oman’s position as a promising regional trading centre aligned with Oman Vision 2040. — ONA

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