Oman has abolished import duties on Indian gems and jewelry under a new trade agreement, potentially reshaping supply-chain dynamics for overseas jewelry buyers. The India-Oman Comprehensive Economic Partnership Agreement (CEPA), signed this week and expected to take effect in March 2026, eliminates the standard 5% customs duty on these products. For importers, distributors, and private-label brands sourcing from India, this could mean more competitive pricing and expanded access to Gulf markets, with exports projected to surge from $35 million to $150 million annually within three years.
Supply-chain impact
The zero-duty regime directly reduces landed costs for Indian gems and jewelry entering Oman, making them more attractive compared to supplies from other origins. For overseas buyers sourcing from India, this could translate into lower wholesale prices for rings, earrings, necklaces, and bridal collections destined for Oman or re-export to neighboring Gulf markets. The agreement covers a broad range of goods, including textiles and pharmaceuticals, but the gems and jewelry sector stands to gain significantly, with the GJEPC forecasting a more than fourfold increase in exports over three years.
What buyers should watch
Oman, with a population of five million and an oil-based economy, serves as a strategic gateway to the Gulf region. Its proximity to the UAE enhances logistics efficiency for re-exports. Buyers should monitor the implementation timeline from March 2026 and consider Oman as a potential hub for distributing Indian-made jewelry, including sterling silver, gold-plated brass, and gemstone pieces. The duty elimination may also encourage Indian manufacturers to expand OEM/ODM capacities targeting Oman-based importers and trading companies.
Compliance and logistics signals
While the duty is abolished, buyers must still ensure compliance with Oman's import regulations, including quality testing and documentation for jewelry, findings, and packaging. The CEPA agreement may introduce rules of origin requirements to qualify for zero duty, so verifying that products meet these criteria is essential. For private-label brands and marketplace sellers, this development could simplify customs procedures and reduce administrative costs when shipping to Oman.
China sourcing context
Although the agreement focuses on India-Oman trade, it indirectly affects China's position as a major jewelry supplier to the Gulf. Indian exporters now enjoy a tariff advantage over Chinese counterparts in Oman, potentially shifting sourcing patterns for regional buyers. Chinese manufacturers of stainless steel, titanium, and costume jewelry may need to reassess pricing strategies or explore similar trade pacts to remain competitive in this market.
Source: Read the original report | Published: December 19, 2025