To circumvent persistent maritime volatility in the Strait of Hormuz, Indian textile and apparel exporters are increasingly re-routing shipments through key Gulf gateways. Oman, leveraging its strategically positioned ports at Sohar, Salalah, and Duqm, has transitioned into a primary logistics corridor, providing Indian manufacturers a stable overland route to bypass regional chokepoints. This logistics shift is fundamentally altering the supply chain landscape, as exporters seek to maintain uninterrupted access to the lucrative Gulf Cooperation Council (GCC) and European markets.

Trade diplomacy boosts export competitiveness

The realignment of trade routes coincides with a pivotal evolution in bilateral trade policy. The India–Oman Comprehensive Economic Partnership Agreement (CEPA), which entered into force in June 2026, has provided immediate zero-duty access for 945 textile and apparel tariff lines. By eliminating the previous 5 per cent Most Favored Nation (MFN) duty, this agreement offers Indian producers a distinct price advantage, effectively cushioning the sector against recent freight-driven cost escalations. This policy-driven momentum is complemented by the UAE’s continued role as a major consolidation hub, where garment shipment volumes recorded a substantial 22 per cent growth in the previous fiscal cycle, further solidifying the region’s status as a critical nexus for South Asian trade.

Navigating market volatility

While the industry faced a 12.98 per cent contraction in finished apparel exports during the early months of the 2026 fiscal year - largely due to elevated shipping overheads - the integration of these regional gateways is expected to restore equilibrium. With the sector focused on achieving a broader target of Rs 33 lakh crore in total market value by 2031, the strategic use of Oman and the UAE as both distribution centers and trade-friendly corridors is vital. Industry analysts suggest that this diversification will be the decisive factor in sustaining export growth as firms transition toward more resilient, multi-modal logistics frameworks.

India’s textile and apparel sector spans the complete value chain from fiber production to finished garments. Key export markets include the EU, GCC, and North America. Growth strategies prioritize infrastructure modernization, FTA-driven market access, and MMF expansion, with a target to reach a Rs 33 lakh crore market size by 2031.