Oman FTA Expected to Commence on June 1, India Aims for $2 Trillion in Exports by 2028

India's Free Trade Agreement with Oman Set to Come into Force

India's free trade agreement with Oman is expected to come into force from June 1. Commerce Minister Piyush Goyal made this announcement on Monday, May 18, while speaking at an event. The minister also stated that several other free trade agreements (FTAs) are likely to be implemented this year as they move through legal ratification.

India is targeting exports worth $2 trillion over the next five years, with a pegged overall exports target for FY27 at $1 trillion. The country's total exports, including services, reached an all-time high of $863 billion in FY26. This achievement is a bright spot in the midst of global geopolitical and economic uncertainty triggered by the war in Ukraine and tensions in West Asia.

India has operationalized trade agreements with the UAE, Australia, and the European Free Trade Association (EFTA) bloc in recent years. The country is also expecting pacts with the European Union and the United Kingdom to kick in this year. The Comprehensive Economic Partnership Agreement (CEPA) signed with Oman on December 18, 2025, will give most Indian exports, including textiles, duty-free access.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The CEPA provides India with zero-duty access on 98.08 percent of Oman's tariff lines, covering 99.38 percent of Indian exports by value. In return, India will cut duties on about 78 percent of its tariff lines, covering nearly 95 percent of imports from Oman, with sensitive products given access mainly through tariff-rate quotas.

Talks for the trade agreement began in November 2023 and concluded in August 2025 after five rounds of negotiations. Total trade between India and Oman stood at $10.61 billion in 2024-25, a growth of 18.6 percent on-year.