New Delhi: Amidst the ongoing tensions at the Strait of Hormuz, the trade pact with Oman holds strategic significance for Indian trade, with Muscat’s coastline situated outside the Strategic waters, unlike other Gulf nations with whom trade has been impacted drastically ever since the conflicts began.
The coastline remains a reliable trade and energy gateway for India think than GTRI said on Monday. It’s not just a pact, it is a long-term energy and economic security. Despite the closure of the strategic waterways, major ports of Oman such as Salalah and Duqm remain accessible, through which Oman can continue to serve as a reliable trade gateway.
The Global Trade Research Initiative (GTRI) said that Oman has a population of 55 lakh and a GDP of about USD 110 billion and hence trade gains to India will remain modest.
“As a result, Oman can continue serving as a reliable trade and energy gateway during periods of conflict or instability in the Gulf,” GTRI Founder Ajay Srivastava said, adding the ongoing Gulf conflict has clearly demonstrated this advantage
The Comprehensive Economic Partnership Agreement between India and Oman was signed in December effective from June 1 that is today.
India’s import from the Gulf economies plummeted significantly from about USD 15 billion in April 2025 to USD 9.8 billion in April 2026, while Indian exports dropped from USD 4.4 billion to USD 2.7 billion. Oman has granted immediate zero-duty access on about 98 per cent of its tariff lines, covering roughly 99 per cent of India’s exports by value.
Indian exports to Oman totaled about USD 4 billion in fiscal 2026, led by refined petroleum products such as petrol (USD 781 million) and naphtha (USD 746 million), followed by calcined alumina (USD 277 million), iron and steel products (USD 230 million), machinery (USD 178 million), and rice (USD 167 million).
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