“The proposed India–EU Free Trade Agreement (FTA) represents a historic opportunity for India’s garment and textile sector. With the EU being one of India’s largest apparel export destinations, duty-free or reduced-duty access will significantly improve cost competitiveness for Indian exporters, especially against countries that currently enjoy preferential trade terms.
This can directly translate into higher export volumes, better capacity utilisation, and stronger order visibility for manufacturers across the value chain.
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More importantly, the FTA goes beyond tariffs. It reinforces India’s position as a reliable, compliant, and responsible sourcing destination at a time when European buyers are increasingly focused on sustainability, transparency, and ethical manufacturing. Indian manufacturers who have invested in renewable energy, water stewardship, traceability systems, and worker welfare will be well placed to benefit.
From an industry perspective, the agreement can accelerate investments, support job creation, and strengthen MSMEs by integrating them deeper into global supply chains. If implemented with practical rules of origin and smooth compliance mechanisms, the India–EU FTA has the potential to be a long-term growth catalyst for Indian garment exports and a strategic reset in India’s trade relationship with Europe.”
CREDITS: Contributed by Dr. Mukesh Kansal, Chairman, CTA Apparels. The content has not been edited and reviewed by us.
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