Indian clothing manufacturer CTA Apparels has welcomed the Indian government’s encouraging progress on the India-EU Free Trade Agreement (FTA), the draft of which is now at an advanced stage.
Commerce and Industry Minister Piyush Goyal confirmed that the negotiations had been “very positive”, with both sides showing readiness to reach a mutually beneficial agreement soon. The European Union is the second largest destination for Indian apparel exports, accounting for nearly 27 percent of India’s apparel exports, valued at over $7.5 billion annually.
Currently, Indian clothing products face import duties ranging from 8 to 12 percent in the EU – tariffs that major competitors such as Bangladesh, Vietnam and Turkey do not face due to preferential trade agreements.
A well-structured India-EU FTA could significantly narrow this competitive gap by reducing or eliminating customs duties, thereby enabling Indian exporters to offer more price-competitive value-added products in Europe, CTA Apparels said in a statement. “The move is expected to boost Indian apparel exports by around 20-25 per cent over the next three years, based on industry trade projections,” the statement added.
Additionally, the agreement’s focus on rules of origin, market access, sustainability and technical standards will help create a predictable and stable environment for long-term investments in the textile value chain. For responsible and sustainability-focused manufacturers, the FTA represents an opportunity to develop global partnerships and strengthen India’s presence in premium European markets.
Mukesh Kansal, Chairman, CTA Apparels, said, “Progress in the India-EU FTA is a welcome development for the Indian apparel sector. The European Union is one of our most important partners, and a fair and forward-looking trade agreement will open new opportunities for growth, technology adoption and sustainable value creation.
A 40-member European Union negotiating team visited New Delhi earlier this month, marking the most intensive phase of talks on the India-EU Free Trade Agreement (FTA), the initial aim of which was to conclude it by the end of this year.