The operationalization of the India-Oman Comprehensive Economic Partnership Agreement (CEPA), scheduled in Q1, FY26, is set to eliminate the prevailing 5 per cent import duty on Indian textile and apparel products. This fiscal adjustment provides immediate price competitiveness for Indian exporters, who currently hold the position of the second-largest supplier to Oman, trailing only China. Industry data indicates that India’s textile exports to the Sultanate reached approximately $132 million in 2024. With zero-duty access now covering 98.08 per cent of tariff lines, the Ministry of Commerce anticipates a significant uptick in the shipment of high-demand categories, including home textiles, synthetic yarns, and ready-made garments.
Leveraging Oman as a regional distribution hub
Beyond direct bilateral trade, the agreement facilitates a broader commercial objective: utilizing Oman’s strategic logistics infrastructure to access the wider Gulf Cooperation Council (GCC) and African markets. By capitalizing on the Port of Duqm and integrated free zones, Indian manufacturers can establish re-export centers to mitigate regional supply chain disruptions. The CEPA is not merely about tariff reduction; it is a structural mechanism to integrate Indian apparel clusters into global value chains, notes an official from the Confederation of Indian Textile Industry (CITI). This strategic alignment is essential as India pursues a sector-specific export target of $100 billion by 2030, necessitating a transition from traditional Western markets toward emerging hubs in West Asia.
Addressing competitive hurdles and quality benchmarks
While the CEPA provides a preferential framework, Indian exporters face rigorous competition from low-cost Asian manufacturers and a growing demand for sustainable, high-specification technical textiles within Oman’s expanding hospitality and healthcare sectors. To maximize the agreement’s utility, Indian firms must align production with Oman’s strict regulatory standards and rising consumer preference for eco-friendly materials. Industry analysts suggest, successful execution will depend on capital investments in local Omani distribution networks, ensuring that the initial tariff advantages translate into sustained long-term market share.
India’s textile industry is a cornerstone of the national economy, contributing significantly to industrial output and employment. Traditionally focused on cotton and artisanal products, the sector is now diversifying into technical textiles and man-made fibers. Current growth strategies emphasize high-value apparel and sustainable manufacturing to meet evolving global trade standards.
