India–Oman CEPA comes Into force; 945 textile tariff lines get duty-free access

Ziraat Times News Desk

New Delhi, June 3: The India–Oman Comprehensive Economic Partnership Agreement (CEPA) came into force on June 1, providing immediate duty-free access to 945 textile and apparel tariff lines and handicraft products in Oman, a move expected to boost exports by Indian MSMEs, artisans and the textile sector.

The agreement, signed on December 18, 2025, by Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef, marks a significant step in strengthening economic and strategic ties between the two countries.

Under the CEPA, Oman has eliminated the existing 5 per cent Most Favoured Nation (MFN) duty on all textile and apparel tariff lines, granting immediate zero-duty market access to Indian products. Similar duty-free access has also been extended to handicraft exports, enhancing the competitiveness of Indian goods in the Gulf market.

Officials said the agreement offers substantial opportunities for India’s textile and apparel industry, particularly micro, small and medium enterprises (MSMEs), by improving access to a market where annual textile and apparel imports are estimated at around USD 598 million.

India exported textiles, apparel and handicrafts worth USD 95.1 million to Oman during 2025-26. With India currently accounting for around 11 per cent of Oman’s total textile and apparel imports and ranking as its third-largest supplier, the agreement is expected to help Indian exporters expand their market share.

The government said Indian exporters are well positioned to benefit from growing demand in segments such as apparel, fabrics, carpets and made-ups, especially value-added and design-oriented products.

A key feature of the agreement is a fully digital Certificate of Origin (CoO) framework, which will allow electronic exchange of origin certificates between the two countries, reducing transaction costs and facilitating smoother trade flows.

The CEPA also includes provisions on intellectual property rights, reaffirming commitments under the WTO’s TRIPS Agreement and ensuring national treatment in IPR protection. It provides for recognition of Geographical Indications (GIs), a measure expected to improve the visibility and marketability of India’s GI-tagged handloom and handicraft products in Oman.

According to the Commerce Ministry, the agreement is expected to deepen bilateral trade, strengthen supply-chain linkages and create new opportunities for exporters, artisans and MSMEs by providing a transparent and predictable trade framework.

The government also highlighted Oman’s growing strategic importance as a trade gateway to the Gulf Cooperation Council (GCC) region and East Africa. Amid evolving geopolitical developments in West Asia, ports such as Sohar are increasingly being viewed as alternative trade routes that bypass key maritime chokepoints, including the Strait of Hormuz.

Officials said the agreement is expected to strengthen India’s economic engagement with Oman while expanding connectivity and trade opportunities across the wider GCC and East African markets.