India-Oman CEPA 2026: New Duty-Free Export Opportunities for Surat Lace Manufacturers

The India-Oman Comprehensive Economic Partnership Agreement (CEPA), which came into effect on June 1, 2026, has created significant new opportunities for textile and lace manufacturers in Surat, Gujarat. This landmark trade agreement provides duty-free access for over 99% of Indian exports to Oman, strengthening India's position in Gulf, African, and Asian markets.

What This Means for Surat's Lace Industry

For lace manufacturers and textile exporters based in Surat, this agreement eliminates tariff barriers when exporting to Oman, making Indian lace products more competitive in the Gulf region. Surat, which produces approximately 40% of India's man-made fabric output and operates 230-240 textile markets, stands to benefit significantly from this expanded market access.

Strategic Gateway to Broader Markets

Oman serves as a strategic gateway for Indian textile products to reach:

Gulf Cooperation Council (GCC) countries – UAE, Saudi Arabia, Kuwait, Bahrain, Qatar
East African markets – Kenya, Tanzania, Ethiopia
Asian trading partners – through Oman's established trade networks

Export Growth Trajectory

India's textile exports, including handicrafts, rose 2.1% year-on-year to ₹3,16,334.9 crore ($33.01 billion) in FY 2025-26. The government has set an ambitious target of achieving $100 billion in textile exports by 2030, and trade agreements like the India-Oman CEPA are critical stepping stones toward this goal.

Product Categories Benefiting

Lace manufacturers specializing in the following categories can capitalize on duty-free export access:

Jari (Zari) lace – Traditional metallic thread lace for bridal and festive wear
Crochet lace – Handcrafted and machine-made varieties
Designer lace borders – For sarees, lehengas, and ethnic wear
Cotton and polyester lace – For both ethnic and contemporary garments

How Surat Exporters Can Leverage CEPA

Verify product eligibility – Ensure your lace products meet Rules of Origin criteria
Obtain necessary certifications – Certificate of Origin from authorized agencies
Connect with Omani importers – Through trade missions and B2B platforms
Competitive pricing – Factor in duty savings when quoting export prices
Quality compliance – Meet international standards for Gulf markets

Support from Government Schemes

Exporters can also benefit from complementary government initiatives:

RoSCTL (Rebate of State and Central Taxes and Levies) – Extended beyond March 2026
RoDTEP (Remission of Duties and Taxes on Exported Products) – Continues to provide tax rebates
Textile PLI Scheme – ₹41,500 crore in projected investments for scaling manufacturing

Looking Ahead

The India-Oman CEPA is part of India's broader Free Trade Agreement (FTA) strategy to diversify export destinations. Between April 2025 and February 2026, Indian textile exports expanded across more than 120 countries, with notable gains in the UAE (22.3%), Germany (9.9%), and Egypt (38.3%).

For Surat's lace manufacturers, this is an opportune moment to expand export operations, explore new markets, and strengthen India's position as a global textile hub.

Ready to explore export opportunities? Paras Lace has been manufacturing premium quality jari, crochet, cotton, and designer lace in Surat since 1990. Contact us at +91 87502 69626 or email [email protected] for wholesale inquiries and export consultation.