India-Oman FTA To Boost Textile Exports

India’s textile and apparel sector is expected to gain significant export opportunities as the proposed free trade agreement (FTA) between India and Oman is likely to come into force from June 1, 2026, according to Union Commerce and Industry Minister Piyush Goyal.

Speaking to reporters in New Delhi, Goyal said discussions with the Oman delegation had progressed positively and the agreement is expected to be operationalised from the beginning of June.

The India-Oman FTA is expected to provide duty-free access to nearly 98 percent of India’s exports to Oman, offering a major boost to sectors such as textiles, apparel, agriculture and leather goods. Industry observers believe the agreement could enhance India’s competitiveness in the Gulf market, particularly for value-added textile products and garments.

The pact is also expected to create new opportunities for Indian textile manufacturers and exporters looking to strengthen their presence in the Middle East region. Oman is seen as a strategic trade gateway for Indian businesses targeting wider Gulf Cooperation Council (GCC) markets.

In return, India will reduce tariffs on several Oman-origin products, including dates, marble and petrochemical items.

Meanwhile, Goyal also highlighted ongoing trade discussions with Chile aimed at expanding the existing Preferential Trade Agreement into a Comprehensive Economic Partnership Agreement (CEPA).

While the India-Chile negotiations are largely focused on critical minerals and mining cooperation, the proposed CEPA is also expected to cover areas such as digital services, investments and MSME collaboration.

According to reports, Chile holds the world’s largest lithium reserves and remains a leading producer of copper, both of which are critical for industries including electronics, automobiles and renewable energy.

India’s bilateral trade with Chile remains modest. During 2024-25, India’s exports to Chile declined by 2.46 percent to US$ 1.15 billion, while imports increased sharply by 72 percent to US$ 2.60 billion.