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Corporate Update

India Oman CEPA Set To Transform Textile Exports And Open New Growth Corridors

• By  Textile Excellence
• December 18, 2025

India and Oman have signed a landmark Comprehensive Economic Partnership Agreement that is expected to significantly strengthen India’s textile and apparel exports and deepen economic integration with the Gulf region. The agreement was signed on December 18, 2025 in Muscat in the presence of Prime Minister Narendra Modi and His Majesty Sultan Haitham bin Tarik, marking a major milestone in bilateral trade relations.

Industry bodies have welcomed the development, calling it a strong positive for India’s labour-intensive textile and clothing sector. The Confederation of Indian Textile Industry said the agreement will improve market access and enhance the price competitiveness of Indian textile products in Oman. India currently ranks as the second largest exporter of textiles and apparel to Oman after China. In 2024, India’s textile and apparel exports to Oman stood at US$131.76 million, indicating steady demand and clear headroom for growth.

The CEPA provides 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 key segments such as apparel and clothing, home textiles, textile fabrics, yarn, and made ups. Industry leaders believe this will help Indian exporters capture a larger share of the Omani textiles market while supporting long term export diversification.

India’s overall textile and apparel exports stood close to US$38 billion in financial year 2024 25. The government has set an ambitious target of reaching US$100 billion in textile and apparel exports by 2030. Trade agreements such as the India Oman CEPA are seen as critical instruments to achieve this goal, especially at a time when exporters are navigating global demand volatility.

The agreement also complements India’s broader trade strategy. India signed a comprehensive trade agreement with the United Kingdom earlier this year and remains engaged in advanced negotiations with the European Union, New Zealand, and the United States. Together, these arrangements are expected to create new export opportunities while safeguarding domestic manufacturing interests.

Industry observers note that recent export data for November 2025 reflects strong resilience among Indian exporters despite global headwinds. The India Oman CEPA is expected to add fresh momentum to this trend, particularly for textiles, which remains one of India’s largest employment generating sectors.

The CEPA provides 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 key segments such as apparel and clothing, home textiles, textile fabrics, yarn, and made ups. Industry leaders believe this will help Indian exporters capture a larger share of the Omani textiles market while supporting long term export diversification.