Duty-free market access under the India-Oman trade pact expected to enhance competitiveness and create new opportunities for textile manufacturers
The implementation of the Comprehensive Economic Partnership Agreement (CEPA) between India and Oman is expected to provide a significant boost to India’s textile and apparel sector, one of the country’s largest export industries. With the agreement coming into force on June 1, 2026, Indian textile exporters will gain enhanced market access and improved competitiveness in Oman and the wider Gulf region.
Under the agreement, India has secured duty-free access on the majority of products exported to Oman, including a wide range of textile and clothing items. The removal of tariffs is expected to lower costs for Omani importers and make Indian textile products more attractive compared to those from competing countries.
Industry stakeholders believe the agreement will benefit exporters across the textile value chain, including producers of cotton yarn, fabrics, home textiles, garments, technical textiles, and made-ups. Small and medium-sized enterprises, which form a substantial part of India’s textile manufacturing ecosystem, are also expected to gain from improved access to the Omani market.
The CEPA arrives at a time when India is actively seeking to expand its global textile footprint and diversify export destinations. Oman’s strategic location and strong trade connectivity with other Gulf Cooperation Council (GCC) countries could enable Indian textile manufacturers to strengthen their presence across the Middle East region.
The agreement is also expected to encourage greater investment and collaboration between businesses in both countries. Improved trade conditions may support the establishment of new supply chain partnerships, warehousing facilities, and distribution networks, helping Indian textile exporters serve regional customers more efficiently.
Textile industry representatives have welcomed the pact, noting that preferential market access can help increase export volumes, improve profitability, and generate employment across the sector. As global competition intensifies, the India-Oman CEPA is seen as an important step in enhancing the international competitiveness of Indian textile products and supporting the industry’s long-term growth ambitions.