Oman FTA May Come Into Force From June As India Eyes $1 Tn Exports This Fiscal

(MENAFN- Live Mint) New Delhi: India's proposed free trade agreement (FTA) with Oman is likely to come into force from 1 June, commerce and industry minister Piyush Goyal said on Monday, as the government sharpens its export-led growth push while strengthening domestic manufacturing to reduce import reliance amid global trade uncertainties.

India has set a target of achieving $1 trillion in combined goods and services exports in the ongoing financial year, and aims to double it over the next five years, Goyal said at an event to launch the portal of Bharatiya Vyapar Mahotsav, a trade fair to be held in August in New Delhi.

“The Oman FTA may come into force from 1 June, while other finalised FTAs awaiting paperwork will also become operational subsequently,” Goyal said.

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India and Oman signed a free trade agreement in December 2025, which will grant duty-free access to 98% of Indian exports to the Sultanate, including textiles, agricultural products, and leather goods. In return, India will reduce tariffs on Omani products such as dates, marble, and petrochemicals.

Bilateral trade between the two nations reached approximately $10.5 billion in 2024-25.

The minister said the government has pursued trade agreements with nearly 38 developed countries over the past three-and-a-half years to provide Indian exporters preferential access to large overseas markets at lower import duties compared to competitors.

National mission

Calling exports a“national mission”, Goyal said India's exports reached $863 billion in FY26, nearly 5% higher than the previous year, despite global challenges. He said both merchandise and services exports have registered growth.

At the same time, the minister urged businesses to closely track import trends and identify opportunities for domestic manufacturing and import substitution. He said the commerce ministry's trade portal could help industries identify products being imported into the country and areas where Indian manufacturing capabilities can be strengthened.

Goyal also pushed for greater adoption of domestically manufactured products, saying rising middle-class consumption could otherwise lead to a surge in imports if local industries fail to meet demand.

Also Read | Why is the India-Oman trade deal significant?

He identified sectors such as capital goods, where India continues to depend significantly on imports, and urged industrial clusters in Rajkot, Jalandhar, Ludhiana, Batala and Pune to scale up domestic manufacturing.

The minister said improving product quality, packaging and productivity would be critical for India to strengthen its presence in global markets. He added that agricultural and fisheries exports have crossed nearly ₹5 trillion, though value addition in these sectors remains limited.

Goyal also called for greater participation of startups, youth and women entrepreneurs in manufacturing and export-oriented sectors.

The Bharatiya Vyapar Mahotsav is scheduled to be held during 12-15 August 2026 at Bharat Mandapam in New Delhi, to boost domestic manufacturing and promote exports.

Also Read | India-Oman free trade deal likely to be signed soon, say officials

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