Oman’s investments in India shrink post-pandemic but trade expands sharply

OMAN'S role as an investor in India has weakened even as bilateral trade has quickened, a Moneycontrol analysis shows. India received $605.6 million in FDI from Oman in FY25—just 0.08 percent of total inflows.

That’s only slightly above the $593.9 million in FY24 and well below the pre-pandemic heft. Oman ranked 31st among FDI sources in FY18 with a 0.12 percent share, sliding to 39th in FY25. Of the $606 million Oman has invested in India, just $150 million has arrived since FY18.

Investments from Oman have dipped

Fiscal Year    FDI (in $ million)    % of inflows    Rank in FDI

FY25    605.6    0.080                      39
FY24    593.9    0.090                      38
FY23    588.9    0.093                      36
FY22    561.0    0.091                      36
FY21    549.5    0.100                      34
FY20    534.4    0.110                      31
FY19    502.1    0.120                      31
FY18    469.2    0.120                      31

Source: DPIITCreated with Datawrapper

Trade tells a different story. Bilateral commerce has more than rebounded from the pandemic dip, climbing from $5.9 billion in FY20 to $10.6 billion in FY25. The new trade agreement is expected to give further impetus to trade and boost investments from the Gulf region.

“Trade agreement with Oman likely in weeks now. Besides, Qatar and India will finalise terms of reference for a trade deal in the first week of October,” Commerce and Industry Minister Piyush Goyal said at the FICCI Leads Summit on September 10.

The engine for trade growth has been India’s imports from Oman, which jumped to $6.5 billion in FY25 from $3.1 billion in FY21. Hydrocarbons remain the anchor: imports of mineral fuels rose to $2.94 billion in FY25, while fertilisers surged to $1.07 billion. Chemicals have steadily thickened the pipeline, with organic chemicals at $608.7 million and inorganics at $407.8 million. Aviation has added ballast too, with aircraft and parts worth $328.4 million.

Exports to Oman, by contrast, have been softer, easing from $4.48 billion in FY23 to $4.07 billion in FY25. The retreat was concentrated in petroleum products, which cooled from $2.19 billion at the FY23 peak to $1.57 billion in FY25, and in the episodic “ships and boats” category, which plunged from $295.8 million in FY24 to just $10.4 million in FY25.

Outside these swings, India’s basket has been stable: cereals at $188.7 million, pharma up to $54.2 million, plastics at $78.8 million, and electrical machinery at $149.5 million. Apparel also held steady at nearly $63.8 million.

Oman’s non-oil footprint in India has widened. Beyond fuels and fertilisers, India bought $406.8 million of salt, sulphur and stone, $219.2 million of plastics, and $64.7 million of iron and steel in FY25.

Oman’s thinning FDI share comes as larger Gulf peers step up investments in India’s infrastructure, renewables, and logistics.