India–Oman Comprehensive Economic Partnership Agreement (CEPA) Comes into Force on 1 June 2026

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) has come into force on 1^st 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 accelerate India'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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MAM