The India-Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on June 1, 2026, marking an important step in strengthening economic and trade relations between India and Oman. The agreement was signed on December 18, 2025, by Union Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef.
The agreement is expected to provide major benefits to India’s textile, apparel, handicraft, and MSME sectors by improving market access in Oman. One of its key features is the removal of import duties on a wide range of Indian textile and apparel products, making them more competitive in the Omani market.
The CEPA also introduces a fully digital trade facilitation framework, strengthens intellectual property cooperation, and provides opportunities for greater recognition of Indian Geographical Indication (GI) products. The agreement is expected to boost bilateral trade and strengthen India’s economic presence in the Gulf region.
Key Highlights
- India-Oman CEPA came into force on June 1, 2026.
- Oman has granted immediate duty-free access to all 945 textile and apparel tariff lines from India.
- Existing 5% Most Favoured Nation (MFN) duty on textile, apparel, and handicraft exports has been removed.
- India exported textiles, apparel, and handicrafts worth USD 95.1 million to Oman in FY 2025-26.
- The agreement introduces a fully digital Certificate of Origin (CoO) system for smoother trade.
- CEPA strengthens intellectual property protection and supports recognition of Indian GI-tagged products in Oman.
Expanded Market Access for Indian Textile and Handicraft Exports
The CEPA provides significant opportunities for India’s textile and apparel industry. Oman has eliminated the existing 5% MFN duty on all 945 textile and apparel tariff lines, granting immediate duty-free access to Indian products.
Duty-free access has also been extended to handicraft exports by removing the existing 5% import duty. This is expected to improve the price competitiveness of Indian products and help exporters expand their presence in the Omani market.
India’s exports of textiles, apparel, and handicrafts to Oman were valued at USD 95.1 million during FY 2025-26. Oman imports textiles and apparel worth around USD 598 million annually, indicating substantial growth potential for Indian exporters.
India currently accounts for about 11% of Oman’s total textile and apparel imports and is the country’s third-largest supplier. The agreement creates opportunities for Indian companies to increase their market share in product categories such as apparel, made-ups, carpets, fabrics, and other value-added textile products.
Digital Trade Facilitation and IPR Cooperation
A major feature of the agreement is the introduction of a modern and fully digitalised Certificate of Origin (CoO) framework. This system enables electronic exchange of origin certificates between India and Oman, helping reduce paperwork, lower transaction costs, and improve trade efficiency.
The agreement also strengthens cooperation in intellectual property rights (IPR). Both countries have reaffirmed their commitments under the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
In addition, the CEPA provides for the recognition of Geographical Indications (GIs). This is expected to improve the visibility and marketability of India’s GI-tagged handloom and handicraft products in the Omani market, creating new opportunities for traditional artisans and producers.
Also Check: UPI Payments in Cambodia: NPCI and ACLEDA Bank Launch Cross-Border QR Payment System
Strategic Importance for Trade and Regional Connectivity
The implementation of the India-Oman CEPA is expected to increase bilateral trade, strengthen supply chain linkages, and create new opportunities for Indian exporters, artisans, and MSMEs.
The agreement comes at a time when Oman is gaining importance as a regional trade hub in West Asia. The country offers access to Gulf Cooperation Council (GCC) markets through ports such as Sohar, providing alternative trade routes beyond traditional chokepoints such as the Strait of Hormuz.
For India, the agreement is expected to improve connectivity with GCC countries and support greater trade engagement with the East African region. This could enhance India’s export competitiveness and strengthen its economic integration with key international markets.
Source: Ministry of Textiles
