India-Oman CEPA: Duty-free access on 945 textile lines to boost exports
Synopsis
India just unlocked a USD 598 million Gulf textile market — duty-free. The India-Oman CEPA scraps the 5% MFN duty across all 945 textile lines and adds GI recognition for handlooms. With Sohar bypassing the Strait of Hormuz, Oman is now India's quiet backdoor into the GCC amid West Asia's geopolitical churn.
Key Takeaways
The India-Oman CEPA came into force this week, granting duty-free access on all 945 textile and apparel tariff lines .
The deal eliminates the existing 5% MFN duty and extends zero-duty access to handicraft lines.
India's textile, apparel and handicraft exports to Oman stood at USD 95.1 million in FY 2025-26 ; Oman imports USD 598 million worth annually.
India is Oman's third-largest supplier , accounting for around 11% of its total imports.
The pact introduces a fully digital Certificate of Origin system and recognition of Geographical Indications .
Oman's Sohar port offers a route bypassing the Strait of Hormuz , strengthening India's GCC connectivity.
The India–Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force this week, has opened a major window for India's textiles and apparel sector, with Oman granting immediate duty-free access across all 945 textile and apparel tariff lines. The pact eliminates the existing 5% Most Favoured Nation (MFN) duty, sharpening the price competitiveness of Indian goods in a key Gulf market.
What the agreement offers
According to a statement issued by the Ministry of Textiles on Wednesday, immediate zero-duty access has also been extended to handicraft tariff lines. India's exports of textiles, apparel and handicrafts to Oman stood at USD 95.1 million in FY 2025–26, while Oman's annual textile and apparel imports are pegged at roughly USD 598 million.
India currently accounts for around 11% of Oman's total imports and ranks as its third-largest supplier, giving Indian exporters significant headroom to expand share in apparel, made-ups, carpets, and fabrics — particularly in value-added and design-led segments.
Digital trade architecture
The agreement embeds a fully digitalised Certificate of Origin (CoO) framework, enabling seamless electronic exchange of origin certificates between the two countries. The Ministry said the mechanism is designed to cut transaction costs, lift efficiency, and smooth trade flows — a structural upgrade over paper-based regimes that have historically slowed Gulf shipments.
IPR and GI protections
CEPA also strengthens cooperation on intellectual property rights, reaffirming both sides' commitments under the WTO TRIPS Agreement and ensuring national treatment for IPR protection. Crucially, the deal provides for recognition of Geographical Indications (GIs), which is expected to enhance the marketability of India's GI-tagged handloom and handicraft products in Oman and reinforce the “Brand India” push globally.
Why Oman matters beyond bilateral trade
Amid escalating geopolitical tensions in West Asia, Oman has emerged as a strategic gateway to the Gulf Cooperation Council (GCC) bloc, allowing cargo to bypass chokepoints like the Strait of Hormuz via ports such as Sohar. The statement noted that the bilateral agreement will deepen connectivity with the wider GCC region and the East African corridor.
What's next
The CEPA is expected to lift bilateral trade volumes, deepen supply-chain linkages, and create fresh opportunities for Indian exporters, artisans and MSMEs. With comprehensive duty-free access now in place, India's textile shipments to Oman are positioned to accelerate over the coming quarters.
Point of View
With the 5% duty wall gone overnight. But the strategic prize is Sohar. As the Strait of Hormuz becomes a recurring flashpoint, Oman is quietly becoming India's hedge into the GCC and East Africa. The GI recognition clause is the underrated win: for handloom clusters from Pochampally to Kashmir, it converts cultural capital into pricing power. Execution now hinges on whether MSMEs can move fast enough to capture share before competitors negotiate parity terms.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the India-Oman CEPA?
The India-Oman Comprehensive Economic Partnership Agreement is a bilateral trade pact that came into force this week, providing duty-free access on all 945 textile and apparel tariff lines between the two countries. It eliminates the existing 5% MFN duty Oman levied on Indian textile imports.
How much does India currently export to Oman in textiles?
India's exports of textiles, apparel and handicrafts to Oman stood at USD 95.1 million in FY 2025-26. Oman's total annual textile and apparel imports are around USD 598 million, leaving significant headroom for Indian exporters to expand share.
What does the CEPA mean for Indian handicrafts and handlooms?
The agreement grants immediate zero-duty access on handicraft lines and provides recognition for Geographical Indications (GIs). This is expected to boost the marketability of GI-tagged Indian handloom and handicraft products in Oman.
Why is Oman strategically important for India beyond bilateral trade?
Oman has emerged as a gateway to the Gulf Cooperation Council (GCC) region, with ports like Sohar allowing cargo to bypass chokepoints such as the Strait of Hormuz. This is particularly valuable amid ongoing geopolitical tensions in West Asia.
What is the digital Certificate of Origin framework under CEPA?
The CEPA introduces a fully digitalised Certificate of Origin system enabling seamless electronic exchange of origin certificates between India and Oman. It is designed to cut transaction costs, improve efficiency, and facilitate smoother trade flows.
