India-Oman CEPA: A Game Changer for Apparel and Textile Sectors

The India-Oman Comprehensive Economic Partnership Agreement (CEPA) is poised to revolutionize India's apparel and textile sectors. It promises enhanced market access, tariff concessions, and improved mobility for skilled professionals. With Oman as a strategic gateway, this deal aligns with India's vision for a global manufacturing expansion and diversified supply chains.

The newly inked India-Oman Comprehensive Economic Partnership Agreement (CEPA) is anticipated to significantly transform India's apparel and textile sectors by fortifying trade relations and enhancing market accessibility, as revealed by CTA Apparels. The agreement promises to facilitate smoother mobility for skilled professionals, aligning seamlessly with India's ambition to expand its global manufacturing footprint.

The CEPA is projected to offer preferential market access, tariff benefits, and streamlined business operations, especially in labour-intensive industries such as garments and textiles. 'With Oman serving as a strategic entry point to the Gulf, East Africa, and broader Middle Eastern markets, the agreement boosts India's competitiveness in high-growth export destinations,' said CTA Apparels.

CTA Apparels asserts that the pact will bolster value-added manufacturing and technology collaborations, enabling Indian manufacturers to forge deeper regional partnerships. As global buyers increasingly seek compliant and sustainable sourcing partners, the CEPA is viewed as a catalyst for long-term growth and strengthened bilateral ties, delivering shared economic value.

Mukesh Kansal, Chairman of CTA Apparels, remarked, 'The India-Oman CEPA is a strategic driver for Indian manufacturing. It enhances market access for the apparel and textile sector, encourages regional partnerships, and reaffirms India's role as a trusted global sourcing hub.'

This is India's second Free Trade Agreement in recent months following the UK deal, part of a strategy to forge trade pacts with developed economies that complement India's interests. The agreement secures unprecedented tariff concessions, offering zero duties on the majority of exports to Oman, benefiting various sectors, with sensitive products being excluded from concessions.

The CEPA also allows 100% Foreign Direct Investment (FDI) by Indian companies in Oman's major service sectors, paving the way for expansion. Future discussions on social security coordination are also planned. Notably, this is Oman's first bilateral agreement since its 2006 deal with the United States.