Overview
- Signed in Muscat on December 18 in the presence of Prime Minister Narendra Modi and Sultan Haitham, the pact was executed by ministers Piyush Goyal and Qais bin Mohammed Al Yousef.
- Oman will remove tariffs on about 98.08% of its lines covering roughly 99% of India’s exports, while India will liberalise 77.79% with exclusions and tariff‑rate quotas to shield sensitive sectors.
- The services package spans 127 sub‑sectors, raises the Intra‑Corporate Transferee quota to 50%, lengthens stays for contractual service suppliers, and permits 100% FDI by Indian firms in major services in Oman.
- Officials expect the agreement to come into force within a few months after domestic procedures, with analysts emphasising benefits for energy security, investment presence, and supply‑chain resilience over rapid export gains.
- Complementary steps include MoUs on maritime cooperation, agriculture, higher education and heritage, prospects for fast‑track pharma approvals, permission for raw marble block exports to India, potential payments linkages, and FY25 trade near $10.5–10.61 billion.