India-Oman trade pact more strategic consolidation than trade breakthrough: GTRI

New Delhi, Dec 18 (PTI) The trade deal with Oman is more a strategic consolidation for India than a major trade breakthrough, as it seeks to lock in market access, professional mobility and New Delhi's influence in a critical maritime and energy corridor, think tank GTRI said.

It said that given the small size of bilateral trade (USD 10.5 billion), its real value goes beyond tariffs, the Global Trade Research Initiative (GTRI) said.

The deal strengthens India's economic and geopolitical presence at the mouth of the Gulf, deepens domestic firms' role in Omani logistics and supply chains, and supports India's wider strategy on energy, services and regional connectivity, it added.

"The agreement is therefore less a trade breakthrough than a strategic consolidation - locking in market access, mobility and influence in a critical maritime and energy corridor," GTRI Founder Ajay Srivastava said.

The comprehensive economic partnership agreement (CEPA) is India's sixth free-trade agreement in the past five years, following deals with Mauritius, the United Arab Emirates, Australia, the EFTA bloc and the UK.

Indian shipments to Oman totalled about USD 4.1 billion in fiscal 2025, led by refined petroleum products such as naphtha and petrol, along with calcined alumina, machinery, aircraft, rice, iron and steel products, consumer goods and ceramics.

While more than 80 per cent of Indian goods already enter Oman at an average tariff of around 5 per cent, duties on some items run as high as 100 per cent.

"Their elimination under the CEPA is expected to improve price competitiveness for Indian exporters, though growth prospects are tempered by the size of Oman's domestic market," he said.

He added that Oman's gains are concentrated in energy and industrial inputs.

India imported roughly USD 6.6 billion of goods from Oman in fiscal 2025, dominated by crude oil, liquefied natural gas and fertilizers, alongside chemical inputs such as methanol and ammonia.

The agreement also includes services commitments, with Oman opening sectors such as IT, business and professional services, education, health care and research. It eases temporary entry for Indian professionals and streamlines regulatory approvals for pharmaceuticals, potentially lowering costs for Indian firms.

"With over 6,000 India-Oman joint ventures and Indian investments of more than USD 7.5 billion-mainly in the Sohar and Salalah free zones, the CEPA is as much a strategic pact as a trade deal," Srivastava said. PTI RR RR MR