India-Oman CEPA creates new growth pathways for Indian apparel, textile exports: CTA Apparels

New Delhi [India], December 20 : The recently signed India-Oman Comprehensive Economic Partnership Agreement (CEPA) is set to open significant new opportunities for India's apparel and textile sector, strengthening trade, enhancing market access, and enabling smoother mobility of skilled professionals, CTA Apparels said.

CTA Apparels, an integrated apparel and textile manufacturer, welcomed the agreement as a timely step that aligns with India's vision of expanding its global manufacturing footprint while fostering resilient and diversified supply chains.

The CEPA is expected to provide preferential market access, tariff advantages, and improved ease of doing business, particularly for labour-intensive sectors such as garments and textiles, CTA Apparels said.

"With Oman positioned as a strategic gateway to the Gulf, East Africa, and wider Middle Eastern markets, the agreement enhances India's competitiveness in high-growth export destinations," CTA Apparels said.

CTA Apparels believes the agreement will also support value-added manufacturing, technology collaboration, and skilled workforce mobility, enabling Indian manufacturers to deepen regional partnerships and deliver faster, more efficient solutions to global brands.

As international buyers increasingly look for compliant, sustainable, and geographically diversified sourcing partners, CTA Apparels sees CEPA as a catalyst for long-term growth, stronger bilateral ties, and shared economic value.

"The India-Oman CEPA is a strategic enabler for Indian manufacturing. For the apparel and textile sector, it strengthens market access, encourages deeper regional partnerships, and reinforces India's position as a reliable global sourcing hub. At CTA Apparels, we see this as an opportunity to scale responsibly while creating shared value across borders," said Mukesh Kansal, Chairman, CTA Apparels.

This is the 2nd Free Trade Agreement India signed in the last 6 months after the United Kingdom, and is a part of strategy to sign trade agreements with developed economies that are not competing with our labour-intensive interests and provide opportunities for Indian businesses.

The CEPA secures unprecedented tariff concessions for India from Oman. Oman has offered zero-duty access on 98.08% of its tariff lines, covering 99.38% of India's exports to Oman. All major labour-intensive sectors, including gems & jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural products, engineering products, pharmaceuticals, medical devices, and automobiles, receive full tariff elimination. Out of the above, immediate tariff elimination is being offered on 97.96% Tariff Lines.

India is offering tariff liberalisation on 77.79% of its total tariff lines (12,.556) which covers 94.81% of India's imports from Oman by value. For the products of export interest to Oman and which are sensitive to India, the offer is mostly a tariff-rate quota (TRQ) based tariff liberalisation.

To safeguard its interest, sensitive products have been kept in the exclusion category by India without offering any concessions, especially agricultural products, including dairy, tea, coffee, rubber, and tobacco products; gold and silver bullion, jewellery; other labour-intensive products such as footwear, sports goods; and scrap of many base metals.

The CEPA further provides for 100 per cent Foreign Direct Investment by Indian companies in major services sectors in Oman through commercial presence, opening a wide avenue for India's services industry to expand operations in the region. In addition, both sides have agreed to hold future discussions on social security coordination once Oman's contributory social security system is implemented, reflecting a forward-looking approach to facilitating labour mobility and worker protection.

This is the first bilateral agreement that Oman has signed with any country since United States of America in 2006.

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