Textile Trade Triumph: India-EU Pact Set to Boost Industry

The India-EU trade agreement promises substantial benefits for India's hosiery, garment, and textile sectors, particularly in West Bengal. Once operational, the deal will enhance market access for Indian exporters in Europe, offering a competitive edge over Bangladesh. However, implementation may take over a year due to required EU parliamentary approvals.

The India-EU trade agreement is set to significantly boost India's hosiery, garment, and textile industry, especially in regions like West Bengal. According to Ramesh Agarwal, vice-president of the West Bengal Hosiery Association, these sectors will likely emerge as key beneficiaries upon the agreement's activation, providing improved market access for Indian exporters in Europe.

Agarwal highlighted the potential benefits for West Bengal, despite the requirement of parliamentary approval from individual EU member states, which could delay implementation by over a year. The agreement aims to offer Indian textile exporters a competitive edge over Bangladesh in the European market amidst current regional challenges.

Agarwal also voiced concerns over India's strained trade relations, impacting nearly USD 8 billion in exports to the US and posing challenges like labor retention. He anticipates India's textile exports could surge from Rs 75,000 crore to Rs 3 lakh crore with improved US market access. Additionally, Agarwal expects taxation reforms in the Union Budget to boost domestic demand.

(With inputs from agencies.)