Brief on India-Oman Economic and Commercial Relations

The economic and commercial relations between India and Oman are robust and buoyant. Bilateral trade during FY 2023-2024 reached US$ 8.947 billion and for the FY 2024-25 reached 10.613 US$ billion. Bilateral investment flows have been robust, as reflected in numerous joint ventures, established both in India and Oman. There are over 6,000 India-Oman joint ventures present in Oman. The cumulative outward direct investment from India to Oman stands at US$ 675 Million. The cumulative FDI equity inflow from Oman to India during April 2000 to March 2025 is US$ 610.08 million. The total trade balance continues to favor Oman, with a figure of US$ 2.48 billion in FY 2024-25, compared to US$ 94.37 million in FY 2023-24. While imports from Oman surged by 44.8%, exports to Oman declined by 8.1% during FY 2024-25.

(All figures in USD million. Source: DoC, India)

11th Session of the India-Oman Joint Commission Meeting (JCM)

Union Minister of Commerce and Industry, Shri Piyush Goyal co-chaired the 11th Session of the India-Oman Joint Commission Meeting (JCM) with H.E. Qais bin Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion of Sultanate of Oman on 28th January 2025 in Muscat. The discussions were held in a cordial and constructive atmosphere, reflecting the strong and enduring ties between the Sultanate of Oman and the Republic of India. These discussions covered a wide range of areas, including review of bilateral trade and investment, Tariff/Non-Tariff related issues, CEPA, cooperation in mining, energy (including renewable energy, Green Ammonia, and Green Hydrogen), Banking and Digital payments, health and pharmaceuticals, Financial intelligence, Heritage and Tourism, Agriculture and food security, Telecom and IT , MSMEs and other sectors of mutual interest

India-Oman Bilateral Trade

Oman ranks as India’s 28th largest trading partner in FY 2024–25, with a total bilateral trade value of US$ 10.61 billion. It is also India’s 25th largest source of imports during the same period. India, in turn, remains among Oman’s top trading partners, emerging as the 4th largest source of Oman’s non-oil imports after Kuwait, China and UAE and the 3rd largest destination for Omani non-oil exports, followed by Saudi Arabia and UAE. Beyond India, Oman’s key trading partners in 2024 include the UAE, Saudi Arabia, South Korea, China, and the United States—countries that also feature prominently in Oman’s import profile, alongside Kuwait.

In 2024, India’s principal exports to Oman comprised a diverse range of products reflecting both industrial and consumer demand. The key export items included light oils and preparations, aluminum oxide (other than artificial corundum), and rice, along with boilers, machinery and mechanical appliances and their parts. India also exported airplanes and other aircraft and spacecraft, electrical machinery and equipment and their components, as well as beauty and make-up preparations, plastics and articles thereof, iron and steel, and ceramic products. These categories underline the strong industrial linkage and the growing diversification of India’s export basket to Oman. 

India’s imports from Oman were dominated by energy and industrial inputs, underscoring the synergy of the two economies. The principal import items included crude petroleum oil and liquefied natural gas (LNG), which together account for a significant portion of the bilateral trade value. Other major imports comprised urea (including fertilizer grade), organic chemicals, anhydrous ammonia, and sulphur. India also imported earth and stone, plastering materials, lime, plastics in primary forms, airplanes and other aircraft, and iron ores and concentrates (non-agglomerated). These items highlight Oman’s role as a key supplier of energy resources, fertilizers, and industrial raw materials to India.

Bilateral trade, import/export and annual growth (last 05 financial years)

India-Oman Bilateral Investment

According to data from the Department for Promotion of Industry and Internal Trade (DPIIT) (formerly DIPP), the cumulative FDI inflows from Oman to India stood at US$ 605 million (INR 3,399.43 crore) during FY 2024–2025. In comparison, during FY 2023–2024, the cumulative FDI inflows from Oman were slightly lower, reflecting stable and sustained investment interest from Omani entities in India’s industrial and infrastructure sectors. The continued FDI flow demonstrates Oman’s long-term confidence in India’s economic fundamentals and the expanding scope of bilateral investment cooperation.

Investment cooperation between India and Oman remains strong and multifaceted, reflecting deep economic engagement between the two nations. There are an estimated over 6,000 India–Oman joint ventures operating in Oman. 

Indian enterprises have made significant investments in Oman across a wide range of sectors, including iron and steel, cement, fertilizers, textiles, cables, chemicals, and automotive industries. This dynamic cross-investment landscape underscores the growing strategic and commercial partnership between the two economies.

• In a major milestone for bilateral investment and sustainable energy collaboration, State-run Minerals Development Oman has signed a $530 million minerals concession agreement with India’s JSW Group for a development on the southern coast of the Gulf state. As part of the agreement, the Indian company will mine for gypsum and limestone with annual production of 30 million tonnes at Shuwaymiyah in the Dhofar region. 

• Dev Salt has entered into a major international partnership in Oman for The Naqa Salt Project, structured as a Public-Private Partnership (PPP) between Oman's Minerals Development Oman (MDO) and Dev Salt (represented by Dev Global). This initiative involves a planned investment of OMR 13.4 million (approximately USD $33-$34.8 million) and is strategically located in Wilayat Mahout in the Al Wusta Governorate, along the Arabian Sea near Duqm Port. The primary goal of the project is to establish the largest industrial salt production initiative in the region, aiming for an annual production of 2 million tonnes of high-purity, bromine-rich industrial salt.

• Kaynes Semicon, a subsidiary of Kaynes Technology, has opened its first international chip design centre in Muscat, Oman. The facility was launched in partnership with Oman’s Ministry of Transport, Communications and Information Technology (MTCIT) and the Ministry of Labour. By establishing a dedicated VLSI design company in Oman and launching a 12-month, fully funded training program for 80 Omani engineers, the collaboration brings advanced global expertise into the country, strengthens national capabilities in a high-growth industry, and supports job creation in future-ready sectors. This initiative significantly enhances Oman’s digital-economy ambitions, attracts international technology investment, and builds a strong foundation for a competitive, knowledge-driven semiconductor ecosystem.

• Tata Consultancy Services (TCS) has recently strengthened its presence in Oman by opening a new facility and expanding its technology and services portfolio to support the Sultanate’s digital transformation under Oman Vision 2040. The company is investing in advanced IT solutions across key sectors such as banking, insurance, capital markets, telecom and retail. Major initiatives include modernizing the Muscat Clearing & Depository’s clearing and settlement systems through the TCS BaNCS platform, and transforming Dhofar Insurance Company’s core insurance operations. Through these investments and partnerships, TCS aims to enhance technology infrastructure, improve customer experience, create local talent opportunities, and support Oman’s long-term economic diversification goals.

• GFCL Electric Power (Anox GFCL Group) has signed an agreement to develop a RO 188 million advanced battery-chemicals project in the Salalah Free Zone. To be implemented over 4–6 years on a 370,000 sqm facility, the project will produce key materials including lithium iron phosphate, ammonium phosphate, iron salts, and carbon components used in electric vehicle batteries and energy-storage technologies.

• ACME India Ltd has signed an agreement to invest US$ 3.5 billion over the next three years to establish a green hydrogen and green ammonia production complex at the Port of Duqm, Oman. This landmark project will make ACME the first company to produce green hydrogen commercially in Oman, positioning the Sultanate as a key player in the emerging global green energy value chain. A Memorandum of Understanding (MoU) has been signed between ACME and the Oman Company for the Development of the Special Economic Zone at Duqm (Tatweer) for the establishment of the facility, which is designed to produce 2,200 metric tonnes of green ammonia per day. The project represents a strategic step toward advancing India–Oman cooperation in renewable energy, green technology, and sustainable industrial development.

• Jindal Shadeed Iron and Steel LLC(JSIS), part of the Jindal group has made a number of strategic investments in Oman. Vulcan International Holding Company, the umbrella company under which JSIS operates, has total investments of over USD 1.5 billion in Sohar. It produces over 2.4mt of steel per annum in Sohar. It has also established Vulcan Pelletizing Plant in Sohar and has acquired Sohar Steel and is now a major producer of ‘new generation high strength steel reinforcement bars (rebar). Jindal Steel, formerly known as Vulcan Green Steel, which is also under the aegis of Jindal Group is investing over USD 3 billion in hydrogen-ready steel production facility at the Special Economic Zone at Duqm (Sezad). It shall have the capacity to produce 5 million tonnes per year of green steel on an annual basis that will create over $800M per annum in-country value addition. It is planned to be completed in 2026. The plant will use renewable hydrogen-powered energy for steel production. Subsidiary of India's Jindal Group, Jindal Renewables signed a Joint Development Agreement (JDA) with OQ Alternative Energy in May 2025. The deal focuses on developing large-scale Integrated Energy Valleys (IEVs) in Oman: hybrid systems combining solar, wind, and storage to deliver 24×7 clean power for green steel plants in Duqm and Sohar.

Mahakali Udyog Nurani LLC has established a strategic partnership with Minerals Development Oman (MDO) to facilitate the export of high-quality limestone and gypsum. Through this collaboration, the company aims to streamline sourcing, enhance supply chain efficiency, and strengthen its presence in key international markets. The agreement reflects a shared commitment to supporting Oman’s mining sector, promoting value-added exports, and meeting the growing global demand for mineral resources.

Asia Plates Steel LLC from India, located in the Sohar Industrial City in Oman, is engaged in the manufacturing and processing of iron and steel products, including billets and various shaped steel components. The company operates as a small to medium-scale industry within Sohar’s growing metals and industrial cluster, supplying steel materials for domestic use and limited export markets. While not among Oman’s major integrated steel producers, Asia Plates Steel LLC plays a role in supporting the local supply chain for construction and industrial steel requirements in the region.

UltraTech Cement Ltd, the cement flagship of the Aditya Birla Group, has expanded its regional footprint into Oman by acquiring a majority stake in Duqm Cement Projects International, LLC (DCPI). In January 2023, through its wholly-owned subsidiary UltraTech Cement Middle East Investments, UltraTech agreed to purchase a 70% equity stake in DCPI from Seven Seas Company LLC — the original owner of DCPI — for US $2.25 million. The investment is aimed at securing long-term access to limestone reserves under DCPI’s mining lease in Duqm, thereby strengthening UltraTech’s raw material supply chain for cement production. The move also aligns with Oman’s objectives of economic diversification and job creation, leveraging the strategic advantages of the special economic zone at Duqm (SEZAD).

• Tata Steel Mining LLC holds a 51% stake in Al-Rimal Mining Company, a joint venture established to develop and operate the Uyun limestone deposits located near Salalah, Oman. This investment reflects Tata Steel’s strategic commitment to securing raw material resources and deepening industrial cooperation with Oman. The project is expected to contribute to Oman’s mining and minerals development goals, while also supporting India’s steel and materials industry supply chains.

• Indian entities represent the largest group of foreign investors in Sohar, underscoring India’s strong industrial footprint in Oman’s key manufacturing and logistics hub. The total Indian investment in Sohar is estimated at over US$ 2 billion, spanning a diverse range of sectors and projects. Major Indian companies with significant operations include Larsen & Toubro, Jindal Shadeed Iron & Steel, Al Tamam Indsil Ferrochrome and Madhav Surfaces. These investments highlight India’s pivotal role in Oman’s industrial diversification efforts and the growing bilateral synergy in manufacturing, metallurgy, and infrastructure development.

• In Salalah, Indian investments are in manufacturing projects like TVS Chennai’s Dunes Oman LLC (automotive), Oswal Group’s Saltic FZCO (Chemicals), Hind Aluminium (Cables), Kailash Group’s guar processing unit, Nagarjuna Fertilizer plant,  Future Bio Organics, Deepak Nitrate, Petiva Sugar factory, etc. 

• In Duqm Special Economic Zone also, an Indo-Oman JV Sebacic Oman has undertaken a US$ 62.7 million project for setting up the largest Sebacic acid plant in Middle-East. A tourism complex project, “Skyline Duqm (previously known as ‘Little India’) has also been established in Duqm.

• The joint venture between Oman’s Hasan Juma Backer Trading & Contracting Co. LLC (HJB) and India’s Tatva Global Environment has secured a $20 million contract for the design and construction of an Integrated Waste Treatment, Storage and Disposal Facility in the Duqm Special Economic Zone (SEZ). The project, awarded by SEZAD on behalf of Oman Environmental Services Holding Co. (Be’ah), forms a vital part of Duqm’s infrastructure development. Under the first phase, the HJB–Tatva JV will build dedicated landfills for municipal solid waste and industrial waste, each equipped with advanced composite lining, leachate systems, and storage infrastructure. The facility will support Duqm’s growing industrial ecosystem and reinforce the JV’s leadership in Oman’s waste management market, where it has already executed major landfill projects in Barka, Sur, Sohar, and Ibri.

Oman's Investment in India

Since April 2000, India has received a cumulative Foreign Direct Investment (FDI) equity inflow of US$ 605.57 million from Oman. The Oman-India Joint Investment Fund (OIJIF) is a key vehicle for this investment, with a total committed capital of US$600 million across three tranches. This has facilitated major joint ventures like the Oman India Fertilizer Company (OMIFCO), a US$969 million project that exports a significant amount of urea to India. Additionally, the Oman Ministry of Transport, Communications and Information Technology (MTCIT) has partnered with Kaynes Technology India to establish Oman's first overseas VLSI chip design center in Muscat.

(i) The OIJIF has invested USD 100 million in India in Tranche I of investment.  Under second tranche an amount of USD 220 million in projects has been invested in India. After successful utilization of funds under Tranche I and II, 3rd Tranche of OIJIF worth USD 300 million was announced during the State visit of His Majesty Sultan Haitham Bin Tarik to India in Dec. 2023 which is under implementation.

(ii) Towell Engineering International LLC has state of art manufacturing unit at Indapur MIDC, Pune with a total area of 20 acres and a covered shed of 10,000 m2. It is a 100% subsidiary of Towell Engineering Oman

Several Indian firms have set up manufacturing units in Oman as joint ventures or in Special Economic Zones in various sectors like green hydrogen, green ammonia, green steel, construction and engineering, waste management, logistics, manufacturing, finance and capital, software solutions, communications, oil and gas etc.

Ongoing engagements related to Trade and Commerce:

• Comprehensive economic partnership agreement: Noteworthy progress has been made in this regard as Technical discussions on the India-Oman bilateral CEPA were completed by April 2024. Multiple round of negotiations between India and Oman for the CEPA was conducted in in the past with fifth round taking place in January 2025.As both sides are working on taking internal approvals, both sides are hopeful for early conclusion.

• Bilateral Investment Treaty: Negotiations are going on particularly related to ISDS chapter. The visit by the Indian delegation recently achieved substantial progress in finalizing majority of the text. There are some issues such as MFN status being demanded by Oman, Oman side wanting its court’s judgment to be final in case of a dispute, however further virtual rounds is expected to be helpful in reaching a common ground for finalization of text of the treaty.

• International Trade settlement using Indian rupee( INR) and Omani Riyal:As to our proposal for International Trade settlement using Indian rupee( INR) and Omani Riyal, the Omani expressed keen interest in establishing a Local Currency Swap Agreement (LCSA) between the Reserve Bank of India (RBI) and the Central Bank of Oman (CBO). Accordingly, a letter from the Ambassador has been sent to Governor of Reserve Bank of India, recommending a high-level meeting between RBI and CBO on the sidelines of the upcoming IMF–World Bank Annual Meetings in Washington D.C.on 14 Oct 2025. Subsequently ,a draft MOU pertaining to bilateral LCSA  received from RBI was shared with Omani side for consideration.

• MOU between OCCI and FICCI:MoU between FICCI and Oman Chamber of Commerce which has been signed long back. FICCI wants to revive it and sign it afresh for which FICCI will be leading a delegation to Oman in November this year.  

• MoU on Invest India and Invest Oman: Draft MoU has been shared with Omani Authorities on 3rd June 2025. with response being pending from Omani Side. MoU on Invest India and Invest Oman would streamline the investment facilitation, enhance bilateral economic cooperation, and promote cross-border business opportunities between India and Oman.

• Secondment of IT officials: Tax authority had requested Department of Revenue to second its officials to Tax Authority as expert for short contractual duration. In response to clarifications in relation to terms of engagement sought by CBDT, Tax authority had provided the clarification which was forwarded to CBDT. Since Tax authority has requested for subject matter dealt by CBIC as well, CBDT is in touch with CBIC and will soon start the selection process. Once the officials are finalized by Department of Revenue, Tax authority will interview them and offer contractual engagement to them. The selection process is expected to take about 2 months as it involves advertising the offer, interviews and clearances.

• The agreement between India and Oman for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed in 1997, aims to eliminate double taxation without providing opportunities for non-taxation or reduced taxation through tax evasion or avoidance. Text of the Protocol amending certain provisions of the DTAA was under consideration. After several rounds of discussions and exchanges, both sides have agreed on a draft text of the Protocol to amend certain provisions of the DTAA. The finalized was sent to the Central Board of Direct Taxes (CBDT) in India and the Omani Tax Authority and upon necessary approvals the DTAA has entered into force on 28 May 2025

Trade and investment promotion activities:

• Indian business delegations, coordinated by various Indian Chambers, regularly visit Oman to participate in trade exhibitions like Project Oman, Infra Oman, COMEX,Oman Health Exhibition & Conference, Oman Food & Hospitality Exhibition, Mineral and Mining Exhibition, Oil and Gas West Asia etc. Similarly, Omani business delegations also visited India to participate in exhibitions related to sectors like Health, Food, Ceramics, IT and Electronics, etc. To facilitate interactions and tie-ups between business communities of India and Oman, Indian Embassy regularly organizes various sector–specific Business-to-Business Meetings. 

• Embassy had organized its a unique initiative under the guidance of HOM called the  ION2025 India-Oman Networking track 1.5 virtual conference on 11 & 12 Aug 2025 - Trade and Economic, SEZs (including logistics, connectivity), Maritime including Fisheries,Mining & minerals, Oil & Gas,Agriculture & food processing (including Millets, horticulture),Technology (including Drones, AI, Cyber security),Manufacturing (including SMEs),Banking and Finance,Digital (including cross border payments),Energy (renewables, energy security),Space for development,Education,Health & Tourism,Defence trade.

• Embassy of India, Muscat organized a B2B interaction on 22nd September, 2025 on the health sector, bringing together leading stakeholders from India. The B2B served as a platform to connect Indian hospitals, healthcare providers, pharmaceutical companies, and medical technology firms with local organizations, investors, and healthcare professionals.

• Embassy of India, Muscat in association with Oman Health Exhibition & Conference (OHEC) celebrated AYURVEDA DAY 2025 on 23rd Sep 2025 under the ambit of India-Oman Ayurveda Network (Track 1.5 public diplomacy initiative) The day long hybrid event witnessed wide participation from India and Oman with distinguished medical professionals and scholars sharing insights on diverse themes of Ayurveda and ideas for promoting Oman as a central hub for Ayurveda in Middle East.

• Under the guidance of HOM, a series of India-Oman Network  (ION) track 1.5 hybrid conference is organized by the Embassy from 11-13 November 2025 on such diverse subjects as: Logistics; Oil and gas, energy security; Housing and Urban Affairs, construction and engineering; Manufacturing, SMEs; Pharmaceuticals, healthcare, Nursing and healthcare professionals; Traditional medicine; Space, Technology, AI, Cyber Security ; ICT, UPI, Banking, Finance, eMuseum; Agriculture and food security; Fisheries; Mining and Minerals; Automobiles / vehicles / cars; Tourism, Hotels / resorts/ Infotainment; Gems and jewelry; and, Education.

November 2025