India-EU Free Trade Agreement: A Game Changer for Apparel Exports

The proposed free trade agreement (FTA) between India and the European Union is set to significantly boost India’s apparel exports. The FTA is seen as a pivotal moment for the garment sector, providing zero-duty market access and addressing tariff disadvantages faced by Indian exporters.

The anticipated free trade agreement between India and the European Union represents a significant opportunity for India's apparel industry, according to the Apparel Export Promotion Council (AEPC). The agreement is expected to drastically increase apparel exports from India to one of the world's largest markets.

AEPC Chairman A Sakthivel highlighted the current challenges faced by Indian garment exporters, including unfavorable tariffs compared to competitors like Bangladesh, Vietnam, and Turkey. He emphasized that the pact would help level the playing field by offering zero-duty market access.

He further noted the FTA's potential to drive employment growth, bolster MSMEs, and support women-focused manufacturing, thereby enhancing India's global competitiveness in apparel.

(With inputs from agencies.)