What is the expected impact of the India-EU FTA on apparel exports?

The India-EU FTA is expected to boost Indian apparel exports to the EU by 20-25% year-on-year due to zero-duty access.

How does the India-EU FTA affect India's competitiveness in textiles?

The FTA restores India's competitiveness by providing zero-duty access, neutralizing previous tariff disadvantages against countries like Bangladesh.

When was the India-EU Free Trade Agreement finalized?

The India-EU Free Trade Agreement was finalized on January 27, 2026.

Home / Business and Economy / India-EU FTA: Apparel Exports to Soar 25%

India-EU FTA: Apparel Exports to Soar 25%

28 Jan

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Summary

India-EU FTA offers zero-duty access for textiles and clothing.
Apparel exports to the EU could grow by 20-25% annually.
The pact restores India's competitiveness against rivals like Bangladesh.

India-EU FTA: Apparel Exports to Soar 25%

The finalization of the India-EU Free Trade Agreement (FTA) on January 27, 2026, signals a major transformation for India's apparel and textile sector. This landmark trade deal grants zero-duty access for textiles and clothing, opening up the EU's vast import market valued at $263.5 billion for Indian exporters.

Industry projections indicate a substantial year-on-year growth of 20-25% for Indian apparel exports to the EU, a significant increase from the current 3.01% growth rate. This enhanced market access is expected to particularly benefit segments like ready-made garments, home textiles, and various apparel categories.

The FTA addresses the previous tariff disadvantages India faced compared to competitors such as Bangladesh, Pakistan, and Turkey. Experts highlight that this zero-duty access immediately restores India's competitiveness, neutralizes the impact of the earlier GSP withdrawal, and allows Indian products to enter the EU market at more competitive prices.