Business Economy


India-Oman CEPA opens duty-free access for Indian textiles, handicrafts

New Delhi, June 3 (UNI): The India-Oman Comprehensive Economic Partnership Agreement (CEPA) will provide significant market access opportunities for India’s textile and apparel sector.
The pact, which came into force on June 1, marked a major milestone in the economic relationship between the two countries.
“Oman has accorded immediate duty-free access on all 945 textile and apparel tariff lines, eliminating the existing 5 percent MFN duty and substantially enhancing the price competitiveness of Indian products in the Omani market,” the textile Ministry statement said here.
According to the Ministry, immediate zero-duty access by elimination of 5 percent MFN duty has also been provided on exports of handicraft lines, which gave an opportunity to expand its footprint in the GCC region.
Highlighting the current West Asia crisis, the ministry said, “Oman has emerged as a gateway for trade with the Gulf Cooperation Council (GCC) nations, by bypassing the chokepoints like the Strait of Hormuz through ports like Sohar.”
This pact will further boost broader connectivity with the Gulf Cooperation Council (GCC) nations with the East African region.
The pact features a modern and fully digitalized Certificate of Origin (CoO) framework, enabling seamless electronic exchange of origin certificates between the two countries. It aims to reduce transaction costs, improve efficiency, and facilitate smoother trade flows.
CEPA will also strengthen cooperation in intellectual property rights by reaffirming both countries ' commitment under the WTO TRIPS agreement and ensuring national treatment in the protection of intellectual property rights (IPR).
This agreement has room for recognition of Geographical Indications (GIs), aiming to boost the visibility and marketability of India’s GI-tagged handloom and handicraft products in the Omani market.
It will contribute to the promotion of “Brand India” globally.
In FY2025-26, India’s exports of textiles, apparel, and handicrafts to Oman stood at USD 95.1 million, while Oman imports textiles and apparel worth approximately USD 598 million annually.
With India currently accounting for around 11percent 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.
UNI SAS AKU
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