Having officially entered into force on June 1, 2026, the India-Oman Comprehensive Economic Partnership Agreement (CEPA) marks a transformative chapter for the domestic textile and apparel sector. By eliminating the prevailing 5 per cent import duties on various textile products, the agreement provides Indian manufacturers with an immediate competitive advantage in a region that serves as a vital logistics gateway for the broader Gulf, East African, and Middle Eastern markets.
Strategic market integration
India is rapidly solidifying its footprint in the Omani textile market. Recent data underscores this momentum, with India’s share of Oman’s total textile imports rising from 9.3 per cent in 2023 to approximately 22 per cent in 2024. As bilateral trade reached $11.18 billion in the FY25-26, the CEPA is expected to further catalyze this growth. Industry stakeholders view the deal as a critical structural shift, particularly for the readymade garments, made-ups, and man-made fiber segments, which have historically faced price sensitivity in the Gulf. This agreement provides the necessary fiscal relief for our MSMEs to achieve greater scale and integration within global value chains, noted a senior official from the Ministry of Commerce.
Logistics and supply chain resilience
Beyond tariff reductions, the partnership positions Oman as a strategic hub for Indian exports, leveraging ports such as Sohar and Salalah to mitigate risks associated with regional maritime volatility. For apparel exporters, the ability to bypass traditional bottlenecks by utilizing these out-of-Strait ports offers a more resilient supply chain architecture. Exporters are now encouraged to utilize the Trade Connect portal to secure preferential Certificates of Origin, ensuring that shipments transition smoothly under the new zero-duty framework. As India targets a $100 billion textile export valuation by 2030, this integration with the Omani market serves as a blueprint for diversifying reach beyond conventional Western destinations.
A cornerstone of the national economy
The Indian textile and apparel industry encompasses the entire value chain from fiber production to finished garments. The sector remains a cornerstone of the national economy, prioritizing exports to the US, EU, and Middle East. Current growth strategies emphasize product diversification, sustainable manufacturing, and deeper penetration into FTA-enabled markets to maintain global competitiveness.
