India-Oman CEPA Opens New Export Opportunities For Indian Textiles
The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, is expected to provide a significant boost to India’s textile and apparel exports by granting duty-free access to the Omani market and strengthening India’s trade connectivity with the Gulf region and East Africa.
Signed in December 2025 and operationalized this week, the agreement provides duty-free access for 99.38 per cent of India’s exports to Oman, covering 98.08 per cent of Oman’s tariff lines. The move is expected to enhance the competitiveness of several labour-intensive sectors, including textiles, apparel, footwear, gems and jewellery, engineering goods and marine products.
For the textile sector, the agreement offers an opportunity to expand exports to Oman and leverage the country’s strategic location as a gateway to the Gulf Cooperation Council (GCC) markets and East Africa. Oman’s major logistics hubs at Sohar, Duqm and Salalah are expected to facilitate faster market access and improved regional distribution for Indian exporters.
The Ministry of Commerce stated that the CEPA is designed to strengthen manufacturing competitiveness, support employment generation and deepen India’s integration into global value chains. Industry observers believe the agreement could help Indian textile exporters diversify markets and improve their position in the Middle East amid increasing global competition.
The agreement also includes measures to simplify trade procedures and reduce non-tariff barriers. Oman will recognize certificates issued by India’s Export Inspection Council (EIC), while dedicated sanitary, phytosanitary and technical barrier provisions are expected to facilitate smoother movement of goods.
Bilateral trade between India and Oman reached US$ 11.18 billion in FY 2025-26, up from US$ 10.61 billion in the previous fiscal year. The government expects the CEPA to further accelerate trade and investment flows between the two countries.
Commerce and Industry Minister Piyush Goyal described the agreement as a major milestone in India’s economic engagement with the Gulf region, stating that it would create new opportunities for exporters, MSMEs and labour-intensive sectors while strengthening India’s participation in regional and global supply chains.
With duty-free access, improved trade facilitation and enhanced regional connectivity, the India-Oman CEPA is expected to emerge as an important platform for expanding India’s textile and apparel exports across the Gulf and neighbouring markets.
