India’s apparel and textile industry welcomes the historic signing of the India–EU Free Trade Agreement, opening new export and growth opportunities.
India’s apparel and textile industry has welcomed the signing of the India–European Union Free Trade Agreement (FTA), calling it a historic milestone that is expected to significantly enhance India’s export competitiveness and unlock new growth opportunities in the European market.
Industry bodies said sentiment across the sector has turned strongly positive following the conclusion of the agreement. The Apparel Export Promotion Council (AEPC) described the FTA as a decisive development for Indian apparel exporters, with expectations that shipments to the EU could potentially double over the next three years.
AEPC Chairman Dr A. Sakthivel said the provision of zero-duty access for Indian garments would substantially improve India’s competitive position in the EU, where exporters have long faced tariff-related disadvantages. He noted that once the agreement becomes operational, Indian apparel exports to the EU could grow at an annual rate of 20–25%, compared with the current growth of around 3%.
Dr Sakthivel added that the elimination of tariffs across all apparel tariff lines would enable Indian manufacturers to compete more effectively on quality, design, innovation and sustainability, rather than relying primarily on price competitiveness. The European Union remains the world’s largest apparel importer, with total imports valued at approximately USD 202.8 billion in FY 2024–25, offering significant scope for expansion.
Although the EU accounts for nearly 28% of India’s total apparel exports, India’s share of the EU apparel market currently stands at about 2.9%. Industry representatives said the removal of tariffs would create a level playing field for Indian exporters against competitors such as Bangladesh, Turkey and Vietnam, which have enjoyed preferential access to the EU market.
The Confederation of Indian Textile Industry (CITI) has also welcomed the agreement, terming it a timely and important step for the textile and apparel sector. CITI Chairman Ashwin Chandran said the removal of tariff barriers would improve the competitiveness of Indian products in the EU and help exporters steadily grow revenues from the region.
At the same time, Chandran emphasized the need for Indian companies to strengthen their focus on innovation, sustainability and value addition to meet evolving European market expectations and move up the value chain.
Echoing this optimism, Pallab Banerjee, Managing Director of Pearl Global Industries Ltd, said Europe represents a larger overall garment market than the United States. While India’s apparel exports to the US stand at around USD 5.5 billion, exports to the EU are currently about USD 4.5 billion. He noted that the India–EU FTA is expected to significantly increase both export volumes and revenue contribution from the European region.
Banerjee also highlighted that as the EU tightens environmental, social and governance (ESG) norms and traceability requirements, India is well positioned to emerge as a preferred sourcing destination due to its strong compliance capabilities.
Industry bodies pointed out that Indian apparel exports have historically faced duties of nearly 10% under the GSP regime and around 12% after its withdrawal, while competing countries enjoyed tariff-free access. The elimination of these tariffs under the India–EU FTA is expected to improve price competitiveness and stimulate fresh investments across the textile and apparel value chain, including advanced materials, modern processing technologies and capacity expansion.
Over the medium term, the agreement is expected to strengthen India’s position as a reliable, compliant and scalable supplier to the European market.
News Courtesy : Apparel resources