India and Oman have signed a Comprehensive Economic Partnership Agreement (CEPA) that is expected to significantly strengthen India’s textile and apparel exports while deepening economic integration with the Gulf region. The agreement was signed on 18th December 2025, in Muscat in the presence of Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tarik, marking a key milestone in bilateral trade relations.
India is currently the second-largest exporter of textiles and apparel to Oman after China, with exports valued at US $ 131.76 million in 2024, highlighting steady demand and significant potential for expansion. Under the CEPA, India will receive zero-duty access on 98.08% of Oman’s tariff lines, covering 99.38% of India’s exports by value.
This near-universal duty-free access is expected to benefit segments such as apparel and clothing, home textiles, fabrics, yarn and made-ups. Industry leaders believe the agreement will enable Indian exporters to secure a larger share of the Omani market while supporting long-term export diversification.
The agreement also aligns with India’s broader trade strategy. Earlier this year, India signed a comprehensive trade agreement with the United Kingdom and continues advanced negotiations with the European Union, New Zealand and the United States. Collectively, these initiatives are expected to create new export opportunities while protecting domestic manufacturing interests.
Industry observers noted that export data for November 2025 indicated resilience among Indian exporters despite global headwinds. The India–Oman CEPA is expected to add further momentum, particularly for the textile sector, which remains one of the country’s largest generators of employment.
Industry bodies, including the Confederation of Indian Textile Industry (CITI), have welcomed the move, describing it as a significant boost for the country’s textile and apparel sector.
CITI Chairman Ashwin Chandran said the agreement would expand market access for Indian companies and enhance the attractiveness and price competitiveness of Indian textile and apparel products for both existing and potential buyers in Oman. He added that the pact is expected to support a meaningful scale-up of India’s textile and apparel exports to the market over the coming years.
Chandran also said that the CEPA with Oman, together with other free trade agreements already concluded or under negotiation, would strengthen the ability of Indian textile and apparel exporters to compete for market share across key global markets.
