By Sourav Shekhar
New Delhi, Jan 28 (.) India’s textile and apparel sector is set for a major expansion following the successful conclusion of the India–European union Free Trade Agreement. The agreement provides zero-duty access for Indian textiles and garments to the European Union, removing tariffs of up to 12 per cent and opening access to a market that imports textiles and apparel worth about USD 263.5 billion annually.
Sharing his perspective on the historical deal, Dr. A Sakthivel, Chairman of Apparel Export Promotion Council (AEPC) said, “The industry sentiments are upbeat after the successful conclusion of the India-EU deal. It will establish a long-term business relationship with the world’s biggest trading block. It is a landmark moment for the Indian apparel industry. This deal will provide a significant boost to apparel exports which is expected to double in next three years.
“This marks a giant leap in India’s journey towards Viksit Bharat. The zero-duty access of Indian garments and clothing to the EU market will not only turn the tables decisively in India’s favour enhancing our competitiveness in the European market but will also create new avenues of investment and job opportunities” Sakthivel added.
According to the Ministry of Textiles statement, the European union is the world’s largest importer of textiles and apparel, accounting for nearly one-third of global imports in the sector.
India’s textile and apparel exports to the EU are currently valued at around USD 7.2 billion and span a wide range of products, including ready-made garments, cotton textiles, man-made fibre products, carpets, handicrafts, jute goods, woollen items, silk and handloom products.
With the elimination of duties across all tariff lines, Indian exporters are expected to gain a clear pricing advantage in the European market.
The ministry noted that the removal of tariffs will address a long-standing disadvantage faced by Indian exporters compared to competing countries that enjoyed preferential access to the EU.
Even marginal duty differences, the statement said, had earlier impacted order flows and sourcing decisions by European buyers, particularly in the apparel segment. The zero-duty regime is expected to enhance demand for Indian garments and enable exporters to expand volumes and deepen market penetration across EU member states.
The agreement is also expected to have a strong employment impact in the sector in India.
The textile and apparel sector is among India’s largest employment generators, supporting millions of workers across the value chain—from fibre and yarn production to weaving, processing and garment manufacturing.
Coming on the tariff factor in textile industry, Dr. Sakthivel noted that FTA eliminates tariff on 100 per cent of apparel tariff lines which will enhance market access to all member countries of the EU.
He said that the EU is the world’s largest apparel importer with total apparel import worth USD 202.8 billion in FY 2024-25.
Once implemented, the India–EU Free Trade Agreement is expected to significantly reshape India’s textile and apparel trade with Europe.
By unlocking duty-free access to the world’s largest import market and improving competitiveness across product categories, the deal is seen as a crucial step in strengthening export growth, employment generation and India’s broader manufacturing ambitions under the vision of Viksit Bharat.
. SAS KK