India and Oman continue to strengthen their economic and commercial partnership, with bilateral trade and investment showing sustained growth across key sectors. The relationship reflects a complementary economic synergy, anchored in energy cooperation, diversified trade, and long-term investment linkages.
Trade Shows Strong Recovery
India-Oman trade ties have shown a growth momentum over the past eight years, with total bilateral trade rising from US$ 6.70 billion in 2017-18 to US$ 10.61 billion in 2024-25.
The positive trend continued this year, with bilateral trade reaching USD 5.45 billion between April and September 2025-26.
Oman emerged as India’s 28th largest trading partner in FY 2024-25, while India ranked as Oman’s fourth largest source of non-oil imports and third largest destination for non-oil exports, underlining the diversification of economic ties beyond hydrocarbons.
Trade Composition Reflects Economic Complementarity
India’s exports to Oman in 2024 were led by light oils and petroleum preparations, aluminium oxide, rice, boilers and machinery, along with aircraft, electrical equipment, plastics, iron and steel, ceramic products, and cosmetics.
Imports from Oman were dominated by crude oil and liquefied natural gas (LNG), which together accounted for a substantial share of bilateral trade. Other major imports included urea and fertilisers, organic chemicals, sulphur, anhydrous ammonia, iron ore, plastics in primary forms, and aircraft components -highlighting Oman’s role as a key supplier of energy and industrial inputs to India.
Investment Linkages Continue to Expand
Investment flows between the two countries remain strong, supported by a large ecosystem of joint ventures. There are over 6,000 India-Oman joint ventures operating in Oman, estimated to have contributed USD 7.5 billion to Oman’s economy over time through capital investments across multiple sectors.
Cumulative FDI equity inflow from Oman to India stood at USD 605.57 million between April 2000 and March 2025, reflecting Oman’s long-term investment interest in the Indian market.
OIJIF Strengthens Financial Cooperation
A key institutional pillar of bilateral investment is the Oman-India Joint Investment Fund (OIJIF), a 50:50 joint venture between the State Bank of India and the Oman Investment Authority. Established in 2010, the fund has invested USD 320 million across two tranches in Indian projects.
During Sultan Haitham bin Tarik’s visit to India in December 2023, a third tranche of USD 300 million was announced and is currently under implementation, reinforcing investor confidence and strategic financial cooperation.
OMIFCO a Flagship Joint Venture
One of the most successful India-Oman industrial collaborations is the Oman India Fertiliser Company (OMIFCO) at Sur, a USD 969 million joint venture between Oman Oil Company and Indian partners IFFCO and KRIBHCO. Operational since 2006, OMIFCO plays a critical role in supporting India’s fertiliser requirements while strengthening Oman’s industrial base.
Growing Presence of Indian Companies
Indian firms have steadily expanded their footprint in Oman through joint ventures and investments in Special Economic Zones. These ventures span emerging and traditional sectors such as green hydrogen, green ammonia, green steel, oil and gas, construction, logistics, waste management, manufacturing, software solutions, finance, communications and renewable energy.
Outlook
India-Oman economic relations are increasingly driven by diversification, sustainability and long-term strategic alignment. With expanding trade volumes, deepening investment cooperation and a growing focus on green and advanced industries, the partnership is well-positioned for continued growth in the coming years.
