India's Zero-Duty Triumph: EU Boosts Apparel Exports

Indian garments are set to receive zero-duty access to the EU market following a new free trade agreement. This move levels the playing field for Indian exporters against Vietnam and Bangladesh, potentially boosting exports by 20-25%. The EU stands as India's largest trading partner.

In a landmark development for India's textile industry, Indian garments will soon enjoy zero-duty access to the European Union market. This comes as part of a recently concluded free trade agreement between India and the 27-nation bloc, announced on Tuesday. The agreement aims to provide Indian textiles and apparel exporters a competitive edge over rivals from countries like Bangladesh and Vietnam.

The European Union is the second-largest market for Indian textile and apparel exports, with the United States being the largest despite its 50% tariff on Indian goods. This new trade pact is anticipated to facilitate greater access for Indian goods into the EU, setting the stage for increased revenue and market expansion.

Industry leaders hailed the agreement, predicting a 20-25% boost in apparel exports year-on-year post-implementation. The agreement eliminates tariffs on all apparel tariff lines for EU member countries, enhancing opportunities in major markets like Germany, France, and Italy. In FY 2024-25, the EU imported apparel worth USD 202.8 billion, underscoring the significance of this agreement for India's export sector.

(With inputs from agencies.)