Indian Economy News

Trade pact with Oman strengthens India's energy security

The implementation of the India-Oman Comprehensive Economic Partnership Agreement (CEPA) marks a significant step in strengthening India’s energy and economic security in the Gulf region. According to industry experts, the agreement creates a stable and predictable framework for a relationship that is critical to India’s energy needs, particularly as the country remains heavily dependent on imports of crude oil, natural gas and petrochemicals. Oman’s strategic location and its coastline outside the Strait of Hormuz provide India with a reliable trade and energy gateway during periods of regional conflict or geopolitical disruptions. Oman is expected to emerge as a strategic manufacturing, logistics and re-export hub for Indian businesses seeking wider access to West Asian markets.

The trade pact is also expected to boost India’s export competitiveness through zero-duty market access, streamlined regulations and reduced compliance requirements. Indian exports to Oman stood at nearly Rs. 35,068 crore (US$ 4 billion) in FY26, led by refined petroleum products, calcined alumina, iron and steel products, machinery and rice. Meanwhile, India imported goods worth Rs. 63,122 crore (US$ 7.2 billion) from Oman, including crude oil, liquefied natural gas (LNG) and fertilisers. Industry stakeholders believe the agreement will help Indian exporters expand their presence not only in Oman but across the wider West Asian region. Beyond trade gains, the CEPA reinforces a strategic partnership that supports secure supplies of energy resources, industrial raw materials and long-term economic cooperation between the two countries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.