India-Oman CEPA Takes Effect, Boosting Trade Relations
The India–Oman Comprehensive Economic Partnership Agreement (CEPA) officially came into effect on June 1, 2026, heralding a new chapter in the economic and strategic relationship between the two nations. Signed on December 18, 2025, by Union Minister of Commerce and Industry, Shri Piyush Goyal, and H.E. Qais bin Mohammed Al Yousef, the Minister of Commerce, Industry and Investment Promotion of Oman, the agreement is a significant achievement under the leadership of Prime Minister Shri Narendra Modi.
Enhanced Market Access for Indian Products
The CEPA paves the way for substantial market access for India’s textiles and apparel industries. Oman has granted immediate duty-free access on all 945 textile and apparel tariff lines, eliminating the previous 5% Most Favored Nation (MFN) duty. This change is expected to greatly enhance the price competitiveness of Indian textiles in Oman. Additionally, handicraft exports will also enjoy zero duty access, positioning Indian products to thrive in this crucial Gulf market.
Potential for Increased Exports
In FY 2025-26, India’s exports of textiles, apparel, and handicrafts to Oman reached approximately USD 95.1 million, while Oman imported textiles and apparel worth around USD 598 million annually. With India already accounting for about 11% of Oman’s total imports, the CEPA opens avenues for expanding exports and capturing a larger market share. Indian exporters are well-prepared to meet the growing demand for value-added and design-focused products, including apparel, carpets, and fabrics.
Streamlined Trade Processes
The newly established agreement includes a modernized and fully digitalized Certificate of Origin (CoO) framework. This initiative will facilitate the electronic exchange of origin certificates between the two countries, minimizing transaction costs and enhancing efficiency, which will lead to smoother trade operations.
Strengthening Intellectual Property Rights
CEPA also aims to bolster cooperation in intellectual property rights, affirming both nations’ commitments under the WTO’s TRIPS Agreement to ensure protection of IPR. The agreement recognizes Geographical Indications (GIs), expected to enhance the marketability of India’s GI-tagged products such as handloom and handicrafts in Oman. This focus will help elevate “Brand India” in global markets.
Broader Trade Implications
The launch of the India–Oman CEPA is anticipated to enhance bilateral trade, deepen supply-chain connections, and create new opportunities for Indian exporters, artisans, and small to medium-sized enterprises (MSMEs). By offering comprehensive duty-free access and establishing a transparent trade framework, the agreement is expected to accelerate India’s textile exports to Oman while reinforcing its role as a reliable supplier in the global arena.
Oman as a Trade Gateway
With ongoing geopolitical shifts in West Asia, Oman has positioned itself as a vital trade gateway for countries looking to connect with Gulf Cooperation Council (GCC) nations. The CEPA will further enhance connectivity with the GCC and the East African region, especially through key ports like Sohar, which help bypass critical chokepoints such as the Strait of Hormuz.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
