Textile Boom: India-EU Free Trade Agreement Sparks Stocks Surge

Textile stocks rose following the announcement of the India-EU free trade agreement, which will eliminate duties on Indian shipments to the EU. 93% of Indian exports will benefit, aiding competitiveness in the European market. Stakeholders hail it as a significant advantage against competitors like Vietnam and Bangladesh.

Textile stocks saw a notable increase on Tuesday, coinciding with the announcement of the conclusion of negotiations for the free trade agreement between the European Union and India.

This agreement, hailed as the 'mother of all deals,' ensures 93% of Indian shipments will now enjoy duty-free access to the 27-nation European bloc, significantly impacting the import costs of luxury goods from the EU for Indian markets.

The zero-duty access granted to Indian garments and clothing positions Indian exporters with a critical competitive edge over countries like Bangladesh and Vietnam, industry leaders assert, boosting India's standing in a key market sector.

(With inputs from agencies.)