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The India-Oman Comprehensive Economic Partnership Agreement (CEPA) officially entered into force on Monday, unlocking a lower-cost gateway for Indian textile and apparel exporters into Gulf markets. The bilateral trade agreement eliminates Oman's 5% import duty across all 945 textile and apparel tariff lines, granting immediate duty-free access to Indian shipments, according to a Ministry of Textiles press release.
By the numbers: India shipped USD 95.1 mn worth of textiles, apparel, and handicrafts to Oman in FY 2025-26. With Oman importing roughly USD 598 mn in the category annually, India currently holds an 11% market share as Oman’s third-largest supplier, leaving substantial headroom for tariff-driven expansion.
The tariff breakdown: The CEPA gives duty-free access to 99.38% of India’s exports to Oman by value and covers 98.08% of Oman’s tariff lines, according to the Ministry of Commerce & Industry. Before the pact, only 15.3% of India’s exports entered Oman at zero duty.
Why it matters: The CEPA equips India’s textile and MSME exporters with zero-tarrif foothold in the Middle East. The real value for the India-MENA corridor lies in pairing zero-duty market access with Oman’s port connectivity. This allows exporters to bypass escalating shipping risks and logistics bottlenecks in the Middle East, while simultaneously hedging against fresh tariff threats in Western markets like the US.
Beyond direct consumption, Oman serves as a vital transshipment base for the region. As India’s second-largest trading partner in the Gulf, the Sultanate links Indian exporters to the wider Gulf Cooperation Council (GCC) and African markets through strategic ports of Sohar, Duqm and, Salalah. Trade through these ports can offer an alternative to chokepoints such as the Strait of Hormuz amid the war, the ministry said.
Diversifying beyond garments: The tariff gains also cover other labour-intensive sectors including gems, jewellery, marine products, processed food, pharmaceuticals, engineering goods, footwear and automobiles. Oman has also opened 127 services sub-sectors, including professional services, healthcare, education, finance, construction, tourism and telecom.
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