Indian Economy News

India-Oman FTA to open doors for textiles and autos

India and Oman are close to concluding a Free Trade Agreement (FTA), which is expected to significantly enhance market access for Indian exporters in Oman and other Gulf countries, according to Union Minister of Commerce & Industry, Mr. Piyush Goyal. The proposed FTA aims to reduce or eliminate tariffs, lowering trade barriers and enabling Indian exporters to compete more effectively in the region. Key beneficiary sectors include textiles, automobiles and other high-value products. Since textiles represent a significant portion of total Indian exports, the FTA will create preferential access to Omani textile markets by allowing Indian textile producers to sell products at lower costs than they could previously. The agreement aligns with India’s strategy to diversify trade partnerships and strengthen economic ties with West Asia, creating new growth opportunities while reducing dependence on traditional markets.
According to Union Minister Mr. Piyush Goyal, the FTA will support India's efforts at diversifying export markets, reforming policies, and connecting India to Global Value Chains. In addition, the FTA is expected to increase investor confidence and create opportunities for increased bilateral cooperation in areas such as logistical support, standards harmonisation, services trade, and other sectors. Overall, the FTA is anticipated to strengthen and diversify bilateral economic connections, expand export opportunities for Indian companies, and build India’s external sector resilience by expanding the variety of international trade flows.

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