The implementation of the India–Oman Comprehensive Economic Partnership Agreement (CEPA) is expected to provide a significant boost to India’s textile, apparel, and handicraft sectors by granting enhanced market access and duty-free trade benefits in the strategically important Gulf market.
According to a statement issued by India’s Ministry of Textiles, the agreement came into force this week and immediately removes tariffs on all 945 textile and apparel tariff lines, creating new growth opportunities for Indian exporters.
Duty-Free Access Enhances Competitiveness of Indian Textiles
Under the new CEPA framework, Oman has granted immediate duty-free access to all textile and apparel products imported from India, eliminating the existing 5% Most Favoured Nation (MFN) duty.The agreement also extends zero-duty access to handicraft products, further strengthening the export potential of India’s traditional and value-added manufacturing sectors.
Industry analysts believe the removal of import duties will significantly improve the price competitiveness of Indian textile and apparel products in the Omani market, enabling exporters to compete more effectively against suppliers from other countries.
Strong Growth Potential in Oman’s Textile Market
India exported textiles, apparel, and handicrafts worth approximately USD 95.1 million to Oman during FY 2025–26. Meanwhile, Oman imports nearly USD 598 million worth of textile and apparel products annually, indicating substantial room for growth.
Currently, India accounts for around 11% of Oman’s total textile and apparel imports and ranks as the country’s third-largest supplier. The new trade agreement is expected to help Indian manufacturers increase market share and expand their presence across multiple product categories.
Key Export Segments Expected to Benefit
Indian exporters are expected to benefit from growing demand in Oman for:
- Apparel and garments
- Home textiles and made-ups
- Carpets and floor coverings
- Fabrics and textile materials
- Handloom products
- Handicrafts and artisanal goods
Particularly strong opportunities are anticipated in value-added, premium, and design-oriented textile products.
Digital Certificate of Origin System Simplifies Trade
A key feature of the India–Oman CEPA is the introduction of a fully digital Certificate of Origin (CoO) framework.
The new system allows electronic exchange of origin certificates between both countries, helping to:
- Reduce paperwork and administrative burdens
- Lower transaction costs
- Improve customs clearance efficiency
- Accelerate cross-border trade processes
The digitalized framework aligns with global efforts to modernize international trade and improve supply chain efficiency.
Enhanced Protection for Geographical Indications and Intellectual Property
The agreement also includes provisions related to intellectual property rights (IPR), reaffirming commitments under the World Trade Organization’s TRIPS Agreement.Importantly, CEPA provides for the recognition of Geographical Indications (GIs), which could create new export opportunities for India’s GI-tagged textile and handicraft products.
Products such as traditional handwoven textiles, regional crafts, and heritage products are expected to gain greater visibility and market recognition in Oman, supporting the global promotion of “Brand India.”
CEPA Expected to Support MSMEs and Artisans
Beyond large exporters, the agreement is expected to generate new opportunities for small and medium-sized enterprises (MSMEs), artisan communities, and handloom producers.
By improving market access and reducing trade barriers, the agreement can help smaller manufacturers expand exports while contributing to employment generation and rural economic development.Industry stakeholders believe the agreement will strengthen supply chain integration between India and Oman while encouraging long-term trade partnerships.
Oman Emerging as a Strategic Trade Gateway
The agreement comes at a time of evolving geopolitical dynamics in West Asia, increasing the strategic importance of Oman as a regional trade hub.Oman’s ports, particularly Sohar Port, provide access to Gulf markets while reducing reliance on traditional maritime chokepoints such as the Strait of Hormuz.
As a result, Oman is increasingly viewed as a gateway to the wider Gulf Cooperation Council (GCC) region and East African markets, offering Indian exporters broader opportunities beyond the domestic Omani market.
The CEPA is expected to further strengthen connectivity between India and GCC countries while supporting regional trade diversification efforts.
Conclusion
The India–Oman CEPA marks a significant milestone for the textile and apparel industry by providing immediate duty-free access to one of the Gulf region’s promising markets. With zero tariffs on textile, apparel, and handicraft products, a digitalized trade framework, enhanced intellectual property protections, and improved access to GCC markets, the agreement is expected to accelerate Indian textile exports, support MSMEs and artisans, and strengthen India’s position as a leading global supplier of textile products.
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