**Executive Summary**
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) officially came into force on 1 June 2026, following its signing on 18 December 2025. The agreement aims to strengthen bilateral economic ties by providing Indian MSMEs and exporters duty-free access to Omani markets, particularly in the textile and handicraft sectors. Key provisions include the elimination of tariffs, a digitalized trade framework, and enhanced cooperation in intellectual property rights.
**Key Points / Main Content**
**Market Access and Tariff Liberalization**
* Oman has granted immediate duty-free access to all 945 textile and apparel tariff lines, eliminating the previous 5% MFN duty.
* Immediate zero-duty access is also provided for Indian handicraft exports.
* The agreement is designed to increase India's current 11% share of Oman's USD 598 million annual textile import market.
**Trade Facilitation and Digitalization**
* A modern, fully digitalized Certificate of Origin (CoO) framework has been incorporated to enable the seamless electronic exchange of certificates.
* These measures are intended to reduce transaction costs, improve efficiency, and ensure smoother trade flows between the two nations.
**Intellectual Property and Brand Recognition**
* The agreement reaffirms rights under the WTO TRIPS Agreement and ensures national treatment for the protection of Intellectual Property Rights (IPR).
* It provides for the recognition of Geographical Indications (GIs), enhancing the visibility and marketability of Indian GI-tagged handloom and handicraft products under "Brand India."
**Strategic Connectivity**
* Oman serves as a strategic gateway for trade with Gulf Cooperation Council (GCC) nations and East Africa.
* By utilizing Omani ports such as Sohar, trade can bypass maritime chokepoints like the Strait of Hormuz, deepening supply-chain linkages.
**Impact Analysis**
**Indian MSMEs and Exporters**
**Impact**
They gain a significant competitive advantage through duty-free access and reduced transaction costs. The CEPA enables them to scale up exports in segments like apparel, made-ups, carpets, and fabrics.
**Action Required**
Exporters should utilize the digital Certificate of Origin framework and target value-added, design-oriented products to capture a larger share of the Omani market.
**Indian Artisans**
**Impact**
Artisans benefit from increased visibility of GI-tagged products and the elimination of duties on handicraft lines, promoting their work globally.
**Action Required**
Artisans and handicraft organizations should leverage the recognition of Geographical Indications to market "Brand India" products more effectively in the Gulf region.
**Omani Importers and Consumers**
**Impact**
They gain access to high-quality, price-competitive Indian textiles and handicrafts without the burden of import duties.
**Action Required**
Omani businesses should facilitate the adoption of the electronic certificate exchange system to streamline imports from India.
Key Entities Referenced
India–Oman Comprehensive Economic Partnership Agreement (CEPA): A bilateral trade agreement that provides duty-free market access and a transparent trade framework to boost economic cooperation between India and Oman.
WTO TRIPS Agreement: An international legal agreement referenced within the CEPA to ensure cooperation and national treatment in the protection of intellectual property rights.
Gulf Cooperation Council (GCC): A regional union of Arab states for which Oman acts as a trade gateway, facilitating India's broader economic connectivity in West Asia.
Ministry of Textiles: The primary Indian government department responsible for the textile sector, which is a major focus of the CEPA's export initiatives.
Ministry of Textiles
India–Oman Comprehensive Economic
Partnership Agreement (CEPA) Comes into Force
on 1 June 2026
CEPA Creates Strong Export Push for Indian MSMEs in
Textile Sector
प्रव तथ: 03 JUN 2026 7:24PM by National
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) has come into force on 1st
June 2026, marking a major milestone in strengthening the economic and strategic partnership between
the two countries. The Agreement was signed on 18 December 2025 by Union Minister of Commerce and
Industry Shri Piyush Goyal and H.E. Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and
Investment Promotion of the Sultanate of Oman, under the leadership of Prime Minister Shri Narendra
Modi.
The CEPA provides significant market access opportunities for India’s textiles and apparel sector. Oman
has accorded immediate duty-free access on all 945 textile and apparel tariff lines eliminating the existing
5% MFN duty and substantially enhancing the price competitiveness of Indian products in the Omani
market. Moreover, immediate zero duty access by elimination of the 5% MFN duty has also been provided
on exports of handicraft lines. This places India in a strong position to expand its exports and consolidate
its presence in a key Gulf market.
India’s exports of textiles, apparel and handicrafts to Oman stood at USD 95.1 million in FY 2025–26,
while Oman imports textiles and apparel worth approximately USD 598 million annually. With India
currently accounting for around 11% of Oman’s total imports and ranking as its third-largest supplier, the
CEPA provides a clear opportunity to significantly scale up exports and gain greater market share. Indian
exporters are well-positioned to tap into growing demand in Oman across key segments such as apparel,
made-ups, carpets, and fabrics, particularly in value-added and design-oriented products.
The Agreement incorporates a modern and fully digitalized Certificate of Origin (CoO) framework,
enabling seamless electronic exchange of origin certificates between the two countries, reducing
transaction costs, improve efficiency, and facilitate smoother trade flows.
CEPA shall also strengthen cooperation in intellectual property rights, reaffirming both countries’ rights
under the WTO TRIPS Agreement and ensuring national treatment in the protection of IPR. The
Agreement provides for recognition of Geographical Indications (GIs), which is expected to enhance the
visibility and marketability of India’s GI-tagged handloom and handicraft products in the Omani market,
further promoting “Brand India” globally.
The entry into force of the India–Oman CEPA is expected to boost bilateral trade, deepen supply-chain
linkages, and create new opportunities for Indian exporters, artisans and MSMEs. By providing
comprehensive duty-free access and a transparent trade framework, the Agreement is set to accelerateIndia’s textile exports to Oman and reinforce its position as a competitive and reliable supplier in the
global market.
In the midst of the geopolitical developments in the West Asia, Oman has emerged as a gateway for trade
with the Gulf Cooperation Council (GCC) nations, by bypassing the chokepoints like the Strait of Hormuz
though ports like Sohar. The bilateral trade agreement would further strengthen a broader connectivity
with the Gulf Cooperation Council (GCC) nations and the East African region.
***
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