Oman, India sign trade agreement amid Modi-Trump tension

Oman signed a free-trade agreement with India that represents the sultanate’s first bilateral economic partnership deal in nearly two decades.

The accord signed in Muscat on Thursday grants Indian goods zero-duty access on about 98% of Omani tariff lines while India offered liberalized tariffs on most Omani imports.

The pact is expected to boost sectors such as gems, textiles and services and may offer some help as India tries to counter U.S. President Donald Trump’s punishing tariffs, Reuters reports.

In August, Trump doubled U.S. duties on Indian goods to 50%, the highest in the world. The hike included a 25% levy that was in retaliation for India’s purchases of Russian oil.

Speaking in Muscat, India’s Prime Minister Narendra Modi said the agreement would “strengthen the India-Oman partnership in the 21st century by renewing confidence and momentum.”