India-Oman Trade Pact Opens New Doors for Textile Exports

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) has officially come into effect from 1 June 2026, marking a significant step forward in economic relations between the two countries and creating fresh opportunities for Indian exporters, manufacturers and artisans. The agreement, signed in December 2025 by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, is expected to deepen trade ties while strengthening India's presence in the Gulf region.

Officials believe the pact will provide a major boost to sectors such as textiles, apparel, handicrafts and small businesses by improving market access and reducing trade barriers.

Duty-Free Access to Benefit Textile and Apparel Industry

One of the biggest gains under the agreement comes for India's textile and apparel sector. Oman has granted immediate duty-free access on all 945 textile and apparel tariff lines, removing the existing 5% Most Favoured Nation (MFN) duty that was previously applicable on imports from India. The same zero-duty treatment has also been extended to handicraft products, making Indian goods more competitive in the Omani market.

Industry experts expect the move to create new export opportunities for Indian manufacturers of garments, fabrics, carpets, home furnishings and other value-added textile products. With lower import duties, Indian exporters are likely to gain a stronger foothold in a market that continues to show growing demand for quality textile and lifestyle products.

Strong Potential for Export Growth

India exported textiles, apparel and handicrafts worth approximately USD 95.1 million to Oman during the 2025-26 financial year. At the same time, Oman imports nearly USD 598 million worth of textile and apparel products annually, indicating considerable room for expansion. India currently accounts for about 11% of Oman's textile and apparel imports and ranks as the country's third-largest supplier in the segment.

The government believes the CEPA will help Indian businesses capture a larger share of this market by enhancing price competitiveness and creating a more predictable trade environment. Small and medium enterprises, handloom producers and handicraft exporters are also expected to benefit from easier market access and improved business prospects.

Digital Trade Framework and GI Protection Included

The agreement introduces a modern digital Certificate of Origin system that enables electronic exchange of trade documents between the two countries. This is expected to reduce paperwork, lower transaction costs and improve the efficiency of cross-border trade. The CEPA also includes provisions related to intellectual property rights and the recognition of Geographical Indications (GIs).

Products carrying GI tags, including many of India's traditional handloom and handicraft items, are expected to gain greater visibility and market recognition in Oman. Officials say this will support efforts to promote "Brand India" internationally while protecting the unique identity of traditional products.

Beyond trade, the agreement is also viewed as strategically important. Oman has emerged as a key gateway to Gulf Cooperation Council (GCC) markets and East Africa. With regional trade routes gaining importance amid changing geopolitical dynamics in West Asia, the CEPA is expected to strengthen India's connectivity and commercial engagement with the wider Gulf region.

The government expects the agreement to boost bilateral trade, strengthen supply chains and create new opportunities for exporters, artisans and MSMEs while reinforcing India's position as a reliable global trading partner.