DUBAI/NEW DELHI: India signed an economic partnership agreement with Oman on Thursday to expand trade and investment. The deal aims to strengthen ties and diversify India’s markets amid high U.S. tariffs. Prime Minister Narendra Modi called it a step to open new opportunities in many sectors.
India and Oman currently trade over $10 billion annually. The Gulf nation serves as a strategic gateway to the Strait of Hormuz, a key oil transit point. Officials said the pact will make trade faster, encourage investment, and deepen bilateral cooperation.
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Modi, on a three-nation tour including Ethiopia and Jordan, emphasized the importance of the agreement. “This pact will set a new pace for trade and build trust in investments,” he said. Analysts noted it is India’s second major trade agreement this year, after the UK.
The deal is also part of India’s strategy to overcome U.S. trade barriers. Earlier, Trump doubled duties on Indian goods to 50%, targeting exports and Russian oil purchases. Despite talks, India has not reached a deal with the U.S. or EU this year.
Experts say the Oman agreement could help Indian exporters reach new markets and reduce reliance on Western economies. It also strengthens India’s influence in the Middle East, enhancing economic and strategic partnerships.