India’s textile and apparel industry is set to gain improved access to the Gulf market following the implementation of the India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into force on June 1, offering duty-free access on all textile and apparel products exported to Oman.
The trade agreement is expected to strengthen India’s position in the Omani market, enhance export competitiveness and create new opportunities for textile manufacturers, apparel exporters, handloom producers and small businesses seeking to expand their presence across the Gulf Cooperation Council (GCC) region.
According to India’s Ministry of Textiles, Oman has eliminated its existing 5% Most Favoured Nation (MFN) tariff on all 945 textile and apparel tariff lines, granting immediate duty-free access to Indian products. The move is expected to provide Indian exporters with a pricing advantage in a market that imports nearly US$ 600 million worth of textiles and apparel annually.
The agreement comes as India seeks to diversify export destinations and strengthen trade ties with fast-growing markets in the Middle East. Industry observers say the removal of import duties could significantly improve the competitiveness of Indian-made garments, home textiles, fabrics, carpets and handicraft products in Oman, where demand for quality textile products has been steadily increasing.
Official data show India exported textiles, apparel and handicrafts worth approximately US$ 95.1 million to Oman during fiscal year 2025-26. While India is currently the third-largest supplier of textile and apparel products to Oman, its market share stands at around 11%, indicating substantial room for expansion.
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With tariffs removed, Indian exporters are expected to target a larger share of Oman’s import market, particularly in value-added segments such as fashion apparel, technical textiles, home furnishings, embroidered products and premium handloom goods.
Trade analysts estimate that even a modest increase in market share could generate tens of millions of dollars in additional export earnings over the next few years. The benefits are expected to be particularly significant for India’s textile hubs in Gujarat, Tamil Nadu, Maharashtra, Punjab and Rajasthan, which supply a wide range of products to international markets.
The agreement also arrives at a time when India’s textile and apparel industry is seeking new growth drivers amid slowing demand in some Western markets. Exports to traditional destinations such as the United States and parts of Europe have faced periods of volatility due to inflationary pressures and changing consumer spending patterns.
Industry leaders believe the Gulf region presents a promising opportunity for diversification. GCC countries collectively import billions of dollars worth of textile and apparel products annually, and rising disposable incomes, expanding retail sectors and growing expatriate populations continue to support demand for apparel and home textile products.
Beyond tariff reductions, the CEPA introduces a fully digitalized Certificate of Origin (CoO) system that will enable electronic verification and exchange of trade documents between customs authorities in both countries. Exporters are expected to benefit from faster clearance procedures, reduced paperwork and lower compliance costs.
The digital trade facilitation measures are particularly important for small and medium-sized enterprises (SMEs), which often face administrative challenges in accessing international markets. By simplifying documentation requirements, the agreement could help a broader range of businesses participate in cross-border trade.
Another notable feature of the pact is enhanced cooperation on intellectual property rights and the recognition of Geographical Indications (GIs). This provision is expected to boost the visibility of India’s GI-tagged textile and handicraft products, including handwoven fabrics, traditional embroidery and artisanal goods.
Industry experts say products such as Banarasi silk, Kanchipuram silk, Pashmina, Chanderi textiles and other heritage crafts could benefit from stronger brand protection and improved market recognition in Oman and the wider Gulf region.
The strategic importance of the agreement extends beyond Oman itself. Trade experts increasingly view Oman as a gateway to the broader GCC market and East Africa due to its geographic location and expanding logistics infrastructure.
Ports such as Sohar and Duqm have emerged as important regional trade hubs, offering alternative shipping routes and facilitating access to markets across the Arabian Peninsula and East Africa. As companies seek to diversify supply chains and improve resilience, Oman’s role in regional trade networks has grown significantly.
The India-Oman CEPA is therefore expected to support not only bilateral trade growth but also India’s broader export ambitions across the Middle East. For the textile and apparel sector, the agreement provides an opportunity to strengthen market presence, expand value-added exports and enhance competitiveness in one of the world’s most strategically important trading regions.
As global sourcing patterns continue to evolve, the duty-free access secured under the agreement could help Indian textile and apparel exporters capture a larger share of Gulf demand while supporting long-term export growth and industry development.
