Last reviewed: 10 September 2026
India–Oman goods trade reached US$11.19 billion in FY 2025–26, according to India’s Department of Commerce series published by the Embassy of India in Muscat. India exported US$4.02 billion to Oman and imported US$7.17 billion. The five-year record shows an established corridor, a sharp commodity-driven peak and correction, and a recovery in the two most recent financial years.
The central finding: bilateral trade is sizeable and diversified on India’s export side, but its total value is still strongly affected by India’s energy and industrial-input imports from Oman. The CEPA can improve access; it cannot remove commodity cycles or create demand by itself.
India–Oman goods trade, FY 2021–22 to FY 2025–26
| Financial year | India exports to Oman | India imports from Oman | Total trade | India trade balance |
|---|---|---|---|---|
| 2021–22 | US$3,148.33m | US$6,840.65m | US$9,988.98m | −US$3,692.32m |
| 2022–23 | US$4,477.25m | US$7,911.18m | US$12,388.43m | −US$3,433.93m |
| 2023–24 | US$4,426.47m | US$4,520.84m | US$8,947.31m | −US$94.37m |
| 2024–25 | US$4,065.14m | US$6,548.78m | US$10,613.92m | −US$2,483.64m |
| 2025–26 | US$4,021.48m | US$7,166.39m | US$11,187.87m | −US$3,144.91m |
What changed over five years?
- Total trade grew by approximately 12.0% from FY 2021–22 to FY 2025–26.
- Indian exports to Oman grew by approximately 27.7% over the same endpoints.
- Indian imports from Oman grew by approximately 4.8% between the two endpoints, but moved much more sharply within the period.
- Total trade peaked at US$12.39 billion in FY 2022–23, then fell by approximately 27.8% in FY 2023–24.
- Trade recovered by approximately 18.6% in FY 2024–25 and another 5.4% in FY 2025–26.
- India’s bilateral deficit narrowed almost to balance in FY 2023–24, then widened again as imports from Oman recovered.
The main volatility came from imports rather than exports. Indian exports stayed near US$4.0–4.5 billion from FY 2022–23 onward, while imports from Oman fell from US$7.91 billion to US$4.52 billion and then rose to US$7.17 billion. That pattern is consistent with a relationship heavily influenced by energy, fertiliser and industrial-commodity values.
What does India sell to Oman?
The Embassy’s FY 2025–26 profile identifies the following principal Indian exports. The categories combine consumer demand, project demand and industrial supply; they should not be treated as one market.
| Export category | What the trade signal may support | What must be checked |
|---|---|---|
| Petroleum products | Established energy trade and industrial demand | Margins, specifications, storage, licensing and commodity-cycle exposure |
| Processed minerals; iron and steel products | Construction, fabrication and industrial projects | Project pipeline, standards, price competition and local production |
| Ships, boats and floating structures | Marine, port and industrial capability | Whether value reflects repeat demand or a small number of high-value deliveries |
| Basmati rice and other food products | Large established food corridor | Buyer concentration, shelf competition, food registration and cold-chain where relevant |
| Buffalo meat | Strong Indian supply position | Approved plants, halal, veterinary and cold-chain requirements |
| Chemicals and allied products | Industrial inputs and downstream applications | Exact chemical, hazardous-goods rules, storage and end-user demand |
| Ceramics and allied products | Construction and interior products | Design, distribution, project cycles and competition |
| Motor vehicles | Consumer, fleet and commercial-vehicle demand | Distributor strength, standards, warranty, parts and resale economics |
India’s official CEPA analysis puts engineering exports to Oman at US$875.83 million in FY 2024–25. This includes machinery, electrical equipment, automobiles, iron and steel and non-ferrous metals. For market entry, the useful question is not merely how much was shipped, but where customers still face downtime, slow parts, insufficient technical support or project-delivery gaps.
What does India buy from Oman?
The principal FY 2025–26 imports listed by the Embassy were petroleum products and crude petroleum, fertilisers, dye intermediates, inorganic chemicals, iron ore, plastic raw materials, bulk minerals and ores, aircraft and spacecraft parts, sulphur and unroasted iron pyrites.
This import basket explains the strategic logic of several bilateral ventures: Oman can combine resources, energy, ports and industrial sites; India can contribute technology, capital, processing capability and a large end market. However, a commodity import does not automatically justify manufacturing in Oman. A local project still needs competitive feedstock, utilities, environmental approval, finance and long-term buyers.
What changed when CEPA entered into force?
The India–Oman CEPA was signed on 18 December 2025 and entered into force on 1 June 2026. India’s official backgrounder states that Oman provided immediate duty-free access on 98.08% of tariff lines covering 99.38% of India’s export value on the agreement’s reference basis. India liberalised 77.79% of its tariff lines, covering 94.81% of imports from Oman by value, while retaining exclusions and phased treatment.
| CEPA feature | Commercial meaning | Common mistake |
|---|---|---|
| Category A | Qualifying Indian-origin goods listed in this category became duty-free from 1 June 2026 | Assuming every product is in Category A |
| Category B | Tariffs reduce in stages to zero by 1 June 2030 | Using the final zero rate before it applies |
| Category C | Tariffs reduce in stages to zero by 1 June 2035 | Ignoring the ten-year schedule |
| Excluded or protected lines | No CEPA preference applies as specified in the schedules | Reading “98.08%” as “100% of all goods” |
| Origin and direct-transport rules | Goods must qualify and remain under the required customs controls in transit | Assuming re-export or repacking creates origin |
| Certificate of origin | Required for the preference and normally valid for 12 months | Treating documentation as optional after shipment |
Oman Customs requires the commercial invoice, bill of lading, an importer request for preferential treatment and the prescribed certificate of origin. It can verify origin and refuse the preference or require a financial guarantee while evidence is checked. The exact HS code, tariff category and product-specific origin rule should therefore be confirmed before quoting a CEPA-based landed price.
Which product gaps look material?
The following figures come from India’s official January 2026 CEPA backgrounder. They describe market-access potential and should be read as government analysis—not as guaranteed future sales.
| Sector | Oman market reference | India reference | Interpretation |
|---|---|---|---|
| Pharmaceuticals | US$302.84m market in 2024 | CEPA includes tariff and regulatory cooperation | Import dependence and faster pathways may help qualified products; approval remains required |
| Agriculture and processed food | US$5.97bn of agricultural imports in 2024 | US$556.34m from India; 10.24% share | Large existing position with room in selected processed and premium categories |
| Marine products | US$118.91m imported during 2022–24 | US$7.75m from India | A relatively underdeveloped corridor, subject to cold-chain and product economics |
| Electronics | US$3.0bn imported in 2024 | US$123m from India | Large market gap, but much was already duty-free and competition is strong |
| Chemicals | US$3.13bn imported in 2024 | US$169.41m from India | Potential in exact chemicals and end uses, not a blanket sector opportunity |
| Textiles | US$597.9m imported in 2024 | US$131.8m from India; 22% share | India already has a meaningful position; growth depends on channel and segment |
| Plastics | US$1.06bn imported in 2024 | US$89.39m from India | Possible export gap, with product, freight and buyer validation required |
| Gems and jewellery | Approximately US$1.07bn imported annually | US$35m from India in 2024 | Commercial upside is possible, but retail positioning and compliance matter |
Services trade is smaller but strategically important
India’s CEPA backgrounder puts bilateral services trade at US$863 million in 2024: US$665 million of Indian services exports and US$198 million of imports from Oman. India therefore recorded a US$447 million services surplus. Oman’s global services imports were stated at US$12.52 billion, with India accounting for 5.31%.
The agreement contains Oman commitments across 127 subsectors, including professional, computer, business, R&D, education, environmental, health and tourism-related services. It also raises the cited ceiling for intra-corporate transferees from 20% to 50% and defines certain professional categories. These are useful treaty commitments, but they are not blanket exemptions from Oman licensing, professional recognition, labour approvals or Omanisation.
How much Indian investment is in Oman?
The Embassy states that more than 6,000 India–Oman joint ventures operate in Oman and estimates that they have contributed nearly US$7.5 billion over a long period. The same sentence explains that this broad estimate includes approximately US$675 million of direct outward investment, investments across sectors and third-country investments made by Indian investors.
Do not label US$7.5 billion as current Indian FDI stock in Oman. It is a broad cumulative contribution estimate with mixed components, not a single contemporaneous FDI-stock series.
| Measure | Reported value | Correct interpretation |
|---|---|---|
| India–Oman ventures or establishments in Oman | More than 6,000 | Count of entities cited by the Embassy; it does not show how many are large or currently active |
| Long-period contribution estimate | Nearly US$7.5bn | Mixed cumulative estimate including direct and third-country investment |
| Approximate Indian outward direct investment component | US$675m | A component of the Embassy’s broad estimate, not automatically current market value |
| Cumulative Oman FDI into India, FY 2025–26 reference | US$640.95m | Oman-to-India FDI series; it says nothing directly about India-to-Oman stock |
| Oman–India Joint Investment Fund | US$100m first tranche, US$220m second, US$300m third announced | A 50:50 SBI–OIA platform created to invest in India, not proof of Indian investment in Oman |
Trade, FDI and project value are different
| Activity | Goods trade? | Usually FDI? |
|---|---|---|
| An Omani distributor imports Indian food or vehicles | Yes | Not merely because the products are Indian |
| An Indian IT firm serves an Oman client remotely | No goods trade; may be services trade | Not without a qualifying local investment position |
| An Indian group opens and capitalises an Oman subsidiary | Imported assets may appear in trade | Equity and qualifying intercompany finance may count |
| A joint venture operates an Oman factory | Inputs and output may enter trade | The investor’s qualifying ownership and finance may count |
| A US$4.2bn project agreement is announced | No, unless goods move | Not equal to US$4.2bn already invested |
What do the numbers suggest commercially?
India’s export opportunity is broader than one product
Engineering, food, vehicles, chemicals and ceramics already have a route into Oman. The strongest next step may be deeper distribution or local support rather than first-time market creation.
Some “gaps” are much better than others
A low Indian share in electronics or chemicals may reflect an opportunity, but it may also reflect product mix, dominant Asian suppliers, procurement specifications or freight. Product-level HS data and buyer interviews must test the explanation.
CEPA supports transactions; it does not replace them
The agreement can improve tariff certainty and selected regulatory pathways. A viable opportunity still needs a customer, product approval, competitive landed cost, reliable payment and enough repeat volume to support the chosen operating model.
Seven questions to ask before using the data
- Which eight- or ten-digit HS code describes the product, and which CEPA category applies?
- Does the product meet the specific origin rule, and who can issue the certificate?
- Has physical volume grown, or did only the price change?
- Who imports the product now, and how concentrated are the buyers?
- How much demand is Omani consumption versus project delivery or re-export?
- Which product registration, technical standard, halal, health or safety approvals apply?
- Does local establishment improve margin or execution enough to justify fixed cost?
For the strategic interpretation, read the India–Oman business relationship overview. For operating examples, see Indian companies and projects in Oman. The ranked sectors are covered in Oman opportunities for Indian companies. The legal setup process remains in the separate India-to-Oman company registration guide.
Sources
- Embassy of India in Oman: five-year trade table, products, investment and company profile
- Department of Commerce, India: Trade Analytics portal
- Press Information Bureau of India: CEPA market-access and sector data
- Oman Customs: CEPA tariff categories, origin and documentation rules
- OMIFCO investor relations: capacity, ownership, workforce and financial profile
Data note: values are rounded. FY means India’s financial year. Goods trade, services trade, FDI, broad cumulative investment estimates and announced project values are separate measures.
