India-Oman Trade Pact Set to Boost Exports from Labour-Intensive Sectors
- IBEF
- June 11, 2026
The India-Oman Comprehensive Economic Partnership Agreement (CEPA) has come into force from June 1, 2026, giving India 100% duty-free access for 98.08% of Oman’s tariff lines and covering 99.38% of export value. According to government and media reports, the agreement is expected to create strong export opportunities for labour-intensive sectors such as textiles, leather, marine products, gems and jewellery, plastics, sports goods and agri-products. The Ministry of Textiles said Oman has granted immediate duty-free access on all 945 textile and apparel tariff lines, along with zero-duty access for handicraft exports, improving the competitiveness of Indian products in the Omani market. The pact was signed in December 2025 by Commerce and Industry Minister Mr. Piyush Goyal and Oman’s Commerce, Industry and Investment Promotion Minister Mr. Qais bin Mohammed Al Yousef.
Experts believe the agreement will help Indian exporters expand their presence in the Gulf region, particularly through Oman’s role as a gateway to the wider Gulf Cooperation Council (GCC) market. The CEPA is also expected to deepen supply-chain linkages, support artisans and Micro, Small and Medium Enterprises (MSMEs), and improve trade facilitation through digitalised Certificate of Origin procedures. Officials noted that India’s exports of textiles, apparel and handicrafts to Oman stood at Rs. 840.05 crore (US$ 95.1 million) in FY26, while Oman imported around Rs. 5,285.64 crore (US$ 598 million) worth of such products annually, indicating room for significant market-share gains. With bilateral trade already reaching Rs. 98,844.52 crore (US$ 11.18 billion) in FY26, the agreement is likely to strengthen India’s export diversification strategy and support labour-intensive sectors seeking wider overseas demand.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
