India-EU Free Trade Agreement: A Boost for Textile Exporters

The India-EU Free Trade Agreement offers Indian textile exporters zero-duty access to the EU's significant market, correcting a tariff disadvantage with competitors. This marks a crucial step in enhancing India's textile exports, boosting employment, and encouraging sustainability and investment in the sector.

The conclusion of the India-EU Free Trade Agreement (FTA) promises to eliminate the tariff disadvantages Indian textile exporters face against competitors from Bangladesh, Pakistan, and Turkey. With zero-duty access to a USD 263.5 billion market, this agreement comes as a significant boost for India's textile industry.

The EU, India's second-largest textile export market after the U.S., had been a critical focal point for the country's strategic economic relations. Textile exports currently account for a substantial portion of India's revenue, with the U.S. representing the largest market.

The agreement not only increases price competitiveness but also supports employment for approximately 45 million people in India. MSMEs in labor-intensive clusters will benefit from increased market access, fostering an environment for investment, technology transfer, and sustainability improvements in line with EU standards.

(With inputs from agencies.)