Coimbatore, June 4, 2026 – The Southern India Mills’ Association (SIMA) has welcomed the implementation of the India-Oman Comprehensive Economic Partnership Agreement (CEPA), describing it as a significant milestone that will strengthen India’s textile exports and create new growth opportunities for the industry.The landmark trade agreement between India and Oman, signed on December 18, 2025, officially came into effect on June 1, 2026, after both countries completed the necessary internal procedures. The agreement provides zero-duty market access for 99.38% of India’s exports, including a wide range of textile and apparel products.
SIMA Applauds Government’s Trade Initiative
In a statement issued today, Mr. Durai Palanisamy, Chairman of SIMA, expressed appreciation to Prime Minister Narendra Modi, Union Commerce Minister Piyush Goyal, and Union Textiles Minister Giriraj Singh for securing what he described as a highly beneficial trade agreement for the textile sector.
According to SIMA, the CEPA aligns with India’s long-term vision of becoming a developed nation by 2047 and is expected to accelerate the growth of the textile industry through improved market access and enhanced export competitiveness.
Textile Industry Gains Competitive Advantage
The agreement is expected to provide Indian textile exporters with a tariff advantage of around 5%, creating a level playing field with competing textile-exporting nations such as Bangladesh and Turkey.
SIMA believes the agreement will significantly benefit India’s readymade garment and home textile sectors by improving price competitiveness in the Omani market and expanding export opportunities.
The organization noted that major textile manufacturing hubs in Tamil Nadu, including Tirupur, Coimbatore, and Karur, stand to gain considerably from the enhanced market access and reduced trade barriers.
Supporting India’s Textile Growth Vision
Mr. Durai Palanisamy emphasized that the CEPA complements several textile-focused initiatives announced by the Government of India, including five new schemes introduced in the recent Union Budget.
Combined with ongoing policy support and industry development programs, these measures are expected to help India achieve ambitious textile sector targets by 2030, including:
- Increasing textile exports from USD 36 billion to USD 100 billion
- Expanding the industry’s business size from USD 172 billion to USD 350 billion
- Attracting investments worth USD 100 billion
- Creating employment opportunities for an additional 20 million people
The textile and apparel sector currently remains one of India’s largest employment generators, supporting more than 110 million people, particularly in rural areas and among women workers.
Oman Offers Significant Export Potential
SIMA highlighted the untapped opportunities available in the Omani textile market. During FY 2025-26, India’s textile exports to Oman were valued at approximately USD 94 million, while Oman’s total textile imports stood at USD 598 million.
India currently accounts for nearly 16% of Oman’s textile imports, making it the country’s third-largest textile supplier. Industry leaders believe the CEPA will help India significantly expand its market share and strengthen its position in the Gulf region.
Gateway to GCC and East African Markets
Beyond direct trade benefits, SIMA emphasized the strategic importance of Oman as a gateway to the wider Gulf Cooperation Council (GCC) region and East African markets.
The association noted that Oman’s logistics hubs at Sohar, Duqm, and Salalah can enhance India’s regional trade connectivity and facilitate broader export growth across neighboring markets.
With duty-free access, improved logistics connectivity, and stronger bilateral trade relations, the India-Oman CEPA is expected to create new momentum for India’s textile and apparel industry while supporting the country’s export-led growth strategy.