India-Oman CEPA Opens New Opportunities for Textile Exports, Says SIMA

Trade pact offers zero-duty access for 99.38% of India’s exports, including textile products, from June 1, 2026

India has implemented its Comprehensive Economic Partnership Agreement (CEPA) with Oman from June 1, 2026, after signing the agreement on 18th December 2025 and completing the required internal processes.

The bilateral trade agreement with Oman, India’s second-largest trading partner in the Gulf region, provides zero-duty access for 99.38% of India’s exports, including products from the textile industry.

In a press release issued on June 4, 2026, Mr. Durai Palanisamy, Chairman, The Southern India Mills’ Association (SIMA), acknowledged the efforts of Hon’ble Prime Minister Shri Narendra Modi ji, Hon’ble Minister of Commerce Shri Piyush Goyal Ji, and Hon’ble Minister of Textiles Shri Giriraj Singh ji in securing the agreement.

Mr. Durai Palanisamy stated that the agreement, together with the five textile-focused schemes announced in the recent Union Budget and other policy initiatives, could support the textile industry’s growth objectives. These include increasing textile exports from US$ 36 Billion to US$ 100 Billion, expanding the industry size from US$ 172 Billion to US$ 350 Billion (including exports), attracting investments of US$ 100 Billion, and creating employment for 20 Million people by 2030.

According to Mr. Durai, Indian textile products will gain a tariff advantage of 5%, creating a level playing field with competing countries such as Bangladesh and Turkey. He noted that the agreement is expected to support exports of readymade garments and home textiles.

He further stated that the CEPA is expected to benefit major textile export clusters in Tamil Nadu, particularly Tirupur, Coimbatore and Karur, by providing broader market access.

Mr. Durai said India’s textile exports to Oman were valued at US$ 94 Million in FY 2025-26, compared with Oman’s total textile imports of US$ 598 Million. India accounted for approximately 16% of Oman’s textile imports and ranked as the third-largest supplier.

He stated that the agreement could provide additional opportunities to expand textile exports and increase India’s share in the Omani market.

Mr. Durai also highlighted the role of Oman’s logistics hubs at Sohar, Dueqm and Salalah in strengthening access to GCC markets and East Africa, supporting broader regional trade connectivity.