India-Oman Bilateral Trade and Economic 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, while trade during FY 2024–25 increased significantly to US$ 10.613 billion. Currently, bilateral trade during FY 2025–2026 has reached US$ 11.187 billion, reflecting the continued strengthening of economic ties between the two countries.

Bilateral investment flows have been robust, as reflected in numerous joint ventures established in both India and Oman. There are over 6,000 India–Oman joint ventures operating in Oman, estimated to have contributed nearly US$ 7.5 billion to Oman’s economy over a long period through total capital investments, including outward direct investment of approximately US$ 675 million, investments across various sectors, and third-country investments made by Indian investors in Oman. The cumulative FDI equity inflow from Oman to India during the period April 2000 to March 2025 stood at approximately US$ 605.57 million, while another official estimate places the figure at US$ 610.08 million.

During FY 2025–26, the trade balance stood at approximately US$ -3,144.91 million, reflecting the continued widening of India’s trade deficit with Oman due to higher imports from Oman, particularly energy and related commodities.

(All figures in US$ 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.

Comprehensive Economic Partnership Agreement (CEPA)

During the official visit of the Hon’ble Prime Minister of India to the Sultanate of Oman ON 17-18 December, the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman was signed by the Commerce Ministers of both countries in the presence of Hon’ble Prime Minister Shri Narendra Modi and His Majesty Sultan Haitham bin Tarik at Baraka Palace. Subsequently His Majesty Haitham bin Tarik issued Royal Decree No. 30/2026 ratifying the Comprehensive Economic Partnership Agreement (CEPA) followed by ratification from Indian side.

India-Oman Bilateral Trade

Oman ranks as India’s 27^th largest trading partner in FY 2025–26, with a total bilateral trade value of US$ 11.187 billion. It is also India’s 26^th largest source of imports during the same period. India, in turn, remains among Oman’s top trading partners, emerging as the 3rd largest source of Oman’s non-oil imports after UAE and China the 3^rd largest destination for Omani non-oil exports, followed by UAE and Saudi Arabia. Beyond India, Oman’s key trading partners in 2026 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 2026, India’s principal exports to Oman comprised a diverse range of products reflecting both industrial and consumer demand. The key export items included Petroleum products, Processed Minerals, Products of Iron & Steel etc. India also exported ship, boat and floating structure, Basmati Rice, Buffallo Meat, Chemical & Allied products,Ceramics and allied products and Motor vehicles. 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  petroleum products and crude petroleum which together account for a significant portion of the bilateral trade value. Other major imports comprised Fertilizers,Dye Intermediates, Inorganic Chemicals, Iron and Ore, Plastic Raw Materials, Bulk Mineral and ores, Aircraft Spacecrafts and parts and Sulphur Unroasted Iron Pyrite. 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 approximately US$ 640.95 million (INR 3,500.32 crore) during FY 2025–26. During FY 2024–25, the cumulative FDI inflows from Oman were US$ 605 million (INR 3,399.43 crore), indicating continued and steady investment growth from Oman into India. The sustained increase in FDI inflows reflects Oman’s long-term confidence in India’s economic prospects and the strengthening bilateral investment partnership between the two countries.

The agreement between India and Oman for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, aiming to eliminate double taxation without providing opportunities for non-taxation or reduced taxation through tax evasion or avoidance, after several rounds of discussions and exchanges, was amended and DTAA has entered into force on 28 May 2025. This further created a investor friendly environment and further increase flow of bilateral investment

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.

Oman India Fertilizer Company (OMIFCO), located at Sur (Oman), is a US$ 969 million joint venture between Oman Oil Company (50% stake) and equal partners IFFCO (25% stake) aOman India Fertilizer Company (OMIFCO), located at Sur (Oman), is a US$ 969 million joint venture between Oman Oil Company (50% stake) and equal partners IFFCO (25% stake) and KRIBHCO (25% stake) of India. It started operations in January 2006.

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.

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. The major Indian companies who have investments in Oman include JSW Group, Larsen & Toubro, TVS,   Dev Salt, Kaynes Semicon, Tata Consultancy Services (TCS), GFCL Electric Power (Anox GFCL Group), ACME India Ltd, Jindal Shadeed Iron and Steel LLC (JSIS), Mahakali Udyog Nurani LLC, Asia Plates Steel LLC, UltraTech Cement Ltd, Tata Steel Mining LLC, Madhav Surfaces, Oswal Group, Hind Aluminium, Kailash Group, Nagarjuna Fertilizer plant,  Future Bio Organics, Deepak Nitrate, Petiva Sugar factory etc.

Oman's Investment in India

Oman-India Joint Investment Fund (OIJIF) is a 50-50 Joint Venture between the State Bank of India and the erstwhile State General Reserve Fund (which has now become Oman Investment Authority) of Oman. It was set up in July 2010 as a special purpose vehicle (SPV) to invest in India. OIJIF commenced its operations in 2011 with an initial seed capital of US$ 100 million which was fully invested across seven Indian companies from diversified sectors. In 2017, OIJIF invested its 2nd tranche of US$ 220 million in projects in India. After successful utilization of funds under tranche I and II, the 3rd OIJIF tranche worth US$ 300 million was announced during the visit of HM Sultan Haitham Bin Tarik to India in December 2023 which is under implementation.

Trade and investment promotion events:

• Indian business delegations, coordinated by various Indian Chambers, regularly visit Oman to participate in trade exhibitions like BIG Show, Infra Oman, COMEX, IMTEC, 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.
• The Embassy also launched the India-Oman Network (ION) is described as a “track 1.5” hybrid forum that aims to bring together government, business, think-tanks and other stakeholders from both India and Oman for ongoing collaboration. These virtual sessions are designed to bring together government, industry, academia, and private sector stakeholders from both India and Oman to strengthen bilateral collaboration and explore new opportunities across key sectors including logistics and connectivity, fisheries, mining and minerals, agriculture and food processing including millets and horticulture, technology sectors such as drones, artificial intelligence and cybersecurity, manufacturing including SMEs, banking and finance, digital economy including cross-border payments, energy covering renewables and energy security, space for development, education, and tourism.

• The Mission 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.

• The Embassy in association with Oman Health Exhibition & Conference (OHEC) celebrated AYURVEDA DAY 2025 on 23rd Sep 2025 under the ambit of India-Oman 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.

• Confederation of Indian Industry (CII) mounted a high-level business delegation to Oman from 17–18 December 2025 as part of its continued efforts to strengthen India–Oman economic engagement. The delegation comprised senior representatives from leading Indian companies across key sectors and participated in structured interactions with Omani government authorities, business leaders, and industry associations. The visit focused on exploring trade and investment opportunities, promoting industry partnerships, and advancing cooperation in priority areas aligned with the growing bilateral economic relationship.

• During the official visit of the Hon’ble Prime Minister of India to the Sultanate of Oman, the Oman–India Business Forum was organized on 18 December 2025 in Muscat. The Forum was chaired by the Hon’ble Prime Minister of India, Shri Narendra Modi, who addressed the gathering comprising senior Omani leadership, government officials, and business representatives from both countries. The event underscored the shared commitment of India and Oman to deepen economic engagement and expand cooperation across key sectors.

• Parallel to the Prime Minister’s visit, the India–Oman Business Dialogue was organized by the Embassy and Oman Chamber of Commerce & Industry (OCCI) in Muscat on 17 December 2025. The Dialogue brought together senior government officials and business leaders from both countries to explore opportunities for strengthening bilateral trade, investment, and industrial cooperation in line with the outcomes of the high-level visit. The Hon’ble Minister of Commerce and Industry of India, Shri Piyush Goyal, addressed the gathering alongside H.E. Qais bin Mohammed Al Yousef, Omani Minister of Commerce, Industry and Investment Promotion, the Chairman of the Oman Chamber of Commerce & Industry, and other distinguished dignitaries. A MoU between Confederation of Indian Industries and Oman Chamber of Commerce and Industry was also signed on 17 December 2025.

• The 2026 Sohar Investment Forum held on Feb 4-5 2026 focused on enhancing the business environment, strengthening public-private partnerships and positioning Sohar as a premier regional hub for logistics, industry, and sustainable investments, aligned with Oman Vision 2040. The event was held under the auspices of Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ). The event saw the signing of five agreements worth RO 12 million and presented over 50 investment opportunities valued at RO 300 million.  Two leading industry chambers from India-Confederation of Indian Industry (CII) and PHD Chamber of Commerce and Industry (PHDCCI) also participated in the Sohar Investment Forum 2026.

• Post-CEPA, the Embassy of India, Muscat (EOI Muscat) is organizing a series of virtual meetings that began from 20th April aimed at bringing together stakeholders from diverse sectors to further strengthen India–Oman economic cooperation. The sessions focused on key areas including agriculture, food processing and FMCG, digital technologies such as ICT, data centres, artificial intelligence and blockchain,engineering and construction, fintech and financial services, textiles and apparel, pharmaceuticals and chemicals, healthcare and medical devices, manufacturing and industrial development including SMEs, as well as renewable energy and sustainable solutions, with the objective of promoting deeper economic engagement and a long-term strategic partnership between India and Oman.

May 2026