Industry body says zero-duty access under the trade pact could strengthen textile exports and improve market access in Oman
India’s Comprehensive Economic Partnership Agreement (CEPA) with Oman has come into effect from 1 June 2026, following its signing on 18 December 2025 and the completion of internal approval processes. The agreement provides zero-duty access for 99.38% of India’s exports, including textile products.
The Southern India Mills’ Association (SIMA) has welcomed the implementation of the agreement, describing it as a significant development for India’s textile sector, which employs more than 11 crore people, predominantly women in rural areas.
In a press release, Mr. Durai Palanisamy, Chairman, The Southern India Mills’ Association, expressed appreciation to 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 for securing the agreement.
According to SIMA, the India-Oman CEPA, together with recently announced textile-focused schemes and policy measures, could support the industry’s long-term 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 20 Million new jobs by 2030.
Mr. Durai stated that Indian textile products would gain a tariff advantage of 5%, creating a level playing field with competing supplier countries such as Bangladesh and Turkey. He noted that the agreement is expected to support exports of readymade garments and home textiles.
He added that the CEPA would particularly benefit major textile export clusters in Tamil Nadu, including Tirupur, Coimbatore and Karur, by providing broader market access opportunities.
According to SIMA, India’s textile exports to Oman reached US$ 94 Million during FY 2025-26, while Oman’s total textile imports stood at US$ 598 Million. India currently accounts for around 16% of Oman’s textile imports and ranks as the third-largest supplier.
Mr. Durai said the agreement could help India expand its share in the Omani textile market and create additional export opportunities for the sector.
He also highlighted the potential role of Oman’s logistics hubs at Sohar, Duqm and Salalah in enhancing India’s connectivity to Gulf Cooperation Council (GCC) markets and East Africa, supporting broader regional trade expansion.
