The India–Oman Comprehensive Economic Partnership Agreement (CEPA), which entered into force on 1 June 2026, marks a significant development in the economic relationship between India and Oman. 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.
Under the agreement, Oman has granted immediate duty-free access to all 945 textile and apparel tariff lines by eliminating the existing 5% Most Favoured Nation (MFN) duty. The same zero-duty treatment has also been extended to handicraft exports, enhancing the competitiveness of Indian products in the Omani market.
India’s exports of textiles, apparel and handicrafts to Oman reached USD 95.1 million in FY 2025–26. Oman imports textiles and apparel worth approximately USD 598 million annually. India currently accounts for around 11% of Oman’s total imports and is its third-largest supplier.
The agreement creates opportunities for Indian exporters to expand their presence across product categories including apparel, made-ups, carpets and fabrics, particularly in value-added and design-oriented segments.
A fully digitalized Certificate of Origin (CoO) framework has been incorporated into the agreement, allowing electronic exchange of origin certificates between the two countries. The mechanism is expected to reduce transaction costs, improve efficiency and support smoother trade operations.
The CEPA also includes provisions relating to intellectual property rights, reaffirming the rights of both countries under the WTO TRIPS Agreement and ensuring national treatment in the protection of IPR. In addition, the agreement provides for the recognition of Geographical Indications (GIs), which is expected to support the visibility and marketability of India’s GI-tagged handloom and handicraft products in Oman.
The implementation of the agreement is expected to strengthen bilateral trade, enhance supply-chain linkages and create additional opportunities for Indian exporters, artisans and MSMEs. By providing duty-free market access and a transparent trade framework, the agreement aims to support the growth of India’s textile exports to Oman.
Amid geopolitical developments in West Asia, Oman has emerged as a gateway for trade with the Gulf Cooperation Council (GCC) nations through ports such as Sohar, bypassing chokepoints like the Strait of Hormuz. The bilateral trade agreement is also expected to support broader connectivity with GCC countries and the East African region.