While the India-Oman trade pact offers duty-free access to most products, exporters in Jammu and Kashmir face hurdles like centralized certification and high freight costs. These structural bottlenecks are preventing small producers of handicrafts and agricultural goods from utilizing the tariff benefits intended to boost regional trade.
The India-Oman Comprehensive Economic Partnership Agreement, which came into force on June 1, 2026, was designed to open significant duty-free channels for Indian exporters to the Gulf market. However, for many small-scale exporters in Jammu and Kashmir, the promise of this trade pact remains largely out of reach due to persistent operational and administrative hurdles.
At the center of the issue is the compliance framework, specifically the requirement for a Certificate of Origin. Currently, exporters in Jammu and Kashmir must route their documentation through the Directorate General of Foreign Trade regional authority located in Ludhiana. For small enterprises, this geographic disconnect adds layers of time, cost, and administrative complexity, often making the process unfeasible for traditional handicraft and agricultural producers who operate on thin profit margins.
Beyond the documentation challenge, the region faces systemic logistical constraints. High freight costs and limited direct connectivity to major shipping ports mean that even if products qualify for lower tariffs, the landed cost often remains uncompetitive. These logistical inefficiencies, combined with a lack of awareness among micro and small enterprises regarding the specific compliance and documentation shifts required under the new agreement, continue to act as a barrier to entry.
While the India-Oman agreement aims to provide duty-free access for over 98% of tariff lines, the actual realization of these benefits for the Kashmiri sector depends on resolving these localized bottlenecks. The regional trade volume, currently estimated at approximately ₹300 crore, is seen by industry advocates as only a fraction of the true potential if these obstacles are addressed.
For stakeholders and observers of the regional economy, the key monitorable will be the establishment of dedicated local export facilitation cells. Such measures, if implemented, could decentralize the certification process and provide the necessary guidance to help local artisans and traders align with the complex compliance frameworks required by international trade agreements. Until these structural changes occur, the expected trade boost may remain unrealized for many small producers in the region.