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

The newly concluded India-EU free trade agreement is set to boost India's exports by granting import duty concessions. Targeted sectors include footwear, leather, apparel, wines, spirits, and automobiles. Industry leaders anticipate significant growth, especially in the apparel sector, strengthening India's position as a key global manufacturing partner.

The European Union has granted import duty concessions to India, under a newly concluded free trade agreement, promising a surge in exports and a boost for domestic manufacturing. The pact, lauded by industry leaders, is set to come into force early next year.

Footwear and leather exports to the EU, the largest market for these sectors, are expected to benefit greatly. In 2024, these exports amounted to USD 2.25 billion, with projections for a rise to USD 6 billion by 2030. Apparels too are poised for growth, with zero-duty access predicted to significantly increase exports.

Additionally, tariff concessions on wines, spirits, and automobile components are anticipated to enhance market access and investment. The Apparel Export Promotion Council foresees apparel exports doubling over the next three years, leveraging duty-free access to the EU, the world's largest apparel importer.

(With inputs from agencies.)