India to Activate Trade Deals with UK and Oman by Mid-2026

India is fast-tracking its trade agreements with Oman and the United Kingdom as part of a broader strategy to diversify global trade partnerships amid geopolitical uncertainties, including the ongoing West Asia crisis. The government aims to operationalise both agreements before June 2026, strengthening economic ties and boosting exports.

These agreements are expected to enhance India’s global trade footprint, create new opportunities for businesses, and reduce dependence on traditional markets.

India-Oman CEPA: Key Highlights and Trade Potential

Timeline for Implementation

India and Oman are working towards implementing their Comprehensive Economic Partnership Agreement (CEPA) by May 2026. The deal is expected to significantly deepen bilateral economic engagement.

Current Trade and Diaspora Links

• Bilateral trade between the two countries currently exceeds $10 billion
• Around 7 lakh Indian nationals reside in Oman
• Indian merchant families have had a presence for over 200–300 years
• Annual remittances from Oman stand at approximately $2 billion

These strong historical and economic ties form a solid foundation for the upcoming trade pact.

Tariff Benefits and Market Access

Oman’s Offer to India

Oman has proposed:

• Zero-duty access on 98.08% of its tariff lines
• Coverage of 99.38% of India’s exports to Oman

This includes key labour-intensive sectors such as:

• Gems & Jewellery
• Textiles
• Leather and footwear
• Sports goods
• Plastics and furniture
• Agricultural products
• Engineering goods
• Medical devices and pharmaceuticals
• Automobiles

Immediate Tariff Elimination

Out of the total, 97.96% of tariff lines will see immediate elimination, offering a major boost to Indian exporters.

India’s Tariff Commitments

India, in return, will:

• Liberalise tariffs on 77.79% of its total tariff lines (12,556)
• Cover 94.81% of imports from Oman by value

However, India has taken a cautious approach for sensitive sectors.

Protected Sectors

Certain products remain excluded from tariff concessions, including:

• Agricultural items (dairy, tea, coffee, rubber, tobacco)
• Gold and silver bullion, jewellery
• Labour-intensive sectors like footwear and sports goods
• Scrap of base metals

For some sensitive products, India has opted for tariff-rate quota (TRQ)-based liberalisation to balance domestic interests.

Untapped Services Sector Opportunities

India’s export share in Oman’s global imports stands at 5.31%, out of Oman’s total services imports of $12.52 billion. This indicates significant untapped potential.

High-Growth Service Sectors

Opportunities exist in:

• Computer-related services
• Business and professional services
• Audio-visual services
• Research and development
• Education and healthcare

The agreement is expected to promote high-value job creation and deepen commercial engagement in these sectors.

India-UK FTA: Nearing Implementation

Legislative Progress

India’s Free Trade Agreement with the United Kingdom has already been approved by both houses of Parliament in the UK, signaling strong political support.

Expected Timeline

According to Piyush Goyal, both nations are working to implement the FTA and the Double Contribution Convention (DCC) within the next 30 to 45 days.

India-UK Trade Performance

Trade between India and the UK has shown steady growth:

• India’s exports to the UK increased by 12.6% to $14.5 billion
• Imports rose by 2.3% to $8.6 billion in 2024-25
• Total bilateral trade reached $21.34 billion in FY 2023-24, up from $20.36 billion in FY 2022-23

The FTA is expected to further accelerate this growth by reducing tariffs and easing market access.

Strategic Importance of These FTAs

Diversification Amid Global Uncertainty

With ongoing geopolitical tensions and supply chain disruptions, India is actively diversifying its trade partnerships to reduce risk.

Boost to Exports and Manufacturing

These agreements will:

• Enhance export competitiveness
• Support domestic manufacturing
• Attract foreign investment

Strengthening Global Trade Position

By securing FTAs with key partners, India is positioning itself as a major player in global trade and supply chains.

Conclusion

India’s push to operationalise its FTAs with Oman and the United Kingdom before June 2026 reflects a strategic effort to strengthen its global trade network in an uncertain economic environment. These agreements are expected to unlock significant opportunities across goods and services sectors, benefiting exporters, businesses, and investors alike.

While the Oman CEPA offers extensive tariff reductions and access to a growing West Asian market, the UK FTA promises deeper engagement with a major developed economy. Together, these deals will not only boost bilateral trade but also support job creation, innovation, and long-term economic growth.

As India continues to expand its trade footprint, timely implementation of these agreements will be crucial in ensuring that businesses can fully capitalise on the opportunities they present.