Procedural Hurdles Hinder Jammu and Kashmir Exporters from Tapping India-Oman CEPA Benefits

Exporters in Jammu and Kashmir are currently facing procedural bottlenecks in accessing preferential benefits under the India-Oman Comprehensive Economic Partnership Agreement (CEPA). Delays in obtaining essential documents are threatening to undermine the tariff advantages offered by the trade pact, according to industry representatives.

The primary hurdle centers on obtaining certificates of origin, a key document required to claim preferential tariff benefits under the agreement. Javed Ahmad Tenga, President of the Kashmir Chamber of Commerce and Industry (KCCI), noted that the issuing authority, the Directorate General of Foreign Trade (DGFT) Regional Authority, is located in Ludhiana. According to Tenga, obtaining these certificates takes time due to the distance.

Tenga stated that the matter has been taken up with the authorities, who have assured exporters that an official would be dedicated to handling such matters specifically for Jammu and Kashmir.

The India-Oman CEPA was signed in Muscat on December 18, 2025, in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik Al Said. Following the completion of internal processes by both countries, the agreement officially entered into force on June 1, 2026.

For Jammu and Kashmir, the trade pact is designed to provide greater market access for traditional and high-value products. These include handicrafts, carpets, pashmina, dry fruits, saffron, and processed food. Additionally, Oman could potentially serve as a gateway for exporters from the Union Territory to the wider Gulf market.

Despite these provisions, exporters and industry representatives emphasize that the benefits could remain limited unless procedural and logistical constraints are addressed. Qazi Tauseef, an exporter and spokesperson for the Kashmir Economic Alliance, stressed the need for institutional support.

"The concerned authorities need to create a dedicated J&K CEPA Export Facilitation Cell, simplify procedures, organise sector-specific awareness programmes and provide handholding to exporters," Tauseef said.

Limited awareness among micro, small, and medium enterprises (MSMEs) and traditional exporters regarding the procedures for claiming CEPA benefits represents an additional hurdle. Smaller businesses, which frequently lack dedicated export and compliance teams, can find navigating documentation requirements difficult, according to Tauseef.

Logistics also remain a prominent concern for regional traders. The distance from Jammu and Kashmir to major ports, combined with high freight costs and limited direct connectivity, can potentially erode the tariff advantages offered under the agreement.

Annual trade between Oman and Kashmir is currently estimated at around ₹300 crore, underscoring the existing commercial links between the two markets. Industry representatives believe the CEPA could help expand this trade volume if exporters can access its preferential provisions with greater ease.

Mushtaq Ahmad, another exporter, highlighted the critical factors for smaller businesses. "For smaller exporters in particular, easier certification, local handholding and greater awareness could determine whether the CEPA translates into actual gains in overseas markets," Ahmad said.

"Trade agreements like the India-Oman CEPA hold immense potential for regional economies like Jammu and Kashmir, particularly for traditional sectors like handicrafts, saffron, and dry fruits. However, this situation demonstrates that policy-level trade facilitation must be supported by accessible local infrastructure, such as regional certification centers and MSME handholding. For trade pacts to deliver ground-level economic impact, governments and trade bodies must proactively bridge the gap between macro-level policy agreements and micro-level operational execution." — Dr. Shishir Gupta, Founder & CEO, StartupLanes