India–Oman Comprehensive Economic Partnership Agreement (CEPA) Comes into Force on 1 June 2026

📌 Summary:

• India–Oman Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 June 2026; signed on 18 December 2025 by Commerce Minister Piyush Goyal and Omani Commerce Minister H.E. Qais bin Mohammed Al Yousef under leadership of PM Modi
• Oman granted immediate duty-free access on all 945 textile/apparel tariff lines (eliminating prior 5% MFN duty); zero duty also on handicraft lines — boosts MSME competitiveness
• India's textile-apparel-handicraft exports to Oman: USD 95.1 million (FY 2025–26); Oman's annual textile/apparel imports: ~USD 598 million; India already 3rd-largest supplier with ~11% share
• Modern fully-digitalized Certificate of Origin (CoO) framework — electronic exchange reduces transaction costs and improves trade flows
• Strengthens IPR cooperation under WTO TRIPS; recognises Geographical Indications (GIs) — boosts visibility of Indian handloom/handicraft GI products globally ("Brand India")
• Strategic significance: Oman emerges as gateway to GCC and East Africa, bypassing Strait of Hormuz chokepoint via ports like Sohar amid West Asia tensions
• Builds on India's Look West policy and Atmanirbhar Bharat in textile manufacturing

🎯 UPSC Relevance: GS2 (India and bilateral/regional groupings — Look West policy, GCC engagement, India–Oman strategic partnership); GS3 (Economy — trade agreements, textile manufacturing, MSME exports, GIs)

📝 Prelims Facts:

• CEPA signed: 18 December 2025; Entered into force: 1 June 2026
• 945 textile/apparel tariff lines covered with immediate zero-duty access (vs prior 5% MFN duty)
• India's textile-apparel-handicraft exports to Oman: USD 95.1 million (FY 2025–26)
• India's share of Oman's total imports: ~11% (3rd-largest supplier)
• Sohar port (Oman): gateway bypassing Strait of Hormuz chokepoint
• GCC has 6 members: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman
• India's other CEPAs: Japan, South Korea, UAE, Mauritius, Australia (ECTA)

🔑 Key Term: CEPA (Comprehensive Economic Partnership Agreement) — a deeper trade pact than an FTA, covering goods, services, investment, IPR, dispute settlement, and digital trade; signals strategic-economic depth, not just tariff cuts.