Surat, the bustling heart of India’s textile industry, is buzzing with excitement following the landmark free trade agreement (FTA) between India and the European Union. This historic pact, finalized after years of negotiations, promises to open new doors for the sector that contributes massively to the nation’s economy.
Textile traders in Surat are hailing the deal as a game-changer. For long, high tariffs imposed by the United States had squeezed margins and stifled growth. Now, with the EU pact in place, those barriers are crumbling, paving the way for tariff-free access to one of the world’s largest markets for garments and fabrics.
Kailash Hakim, head of the Federation of Textile and Trade Association, described the FTA as the culmination of 18 years of relentless government efforts. ‘America’s tariff hikes aimed to scare us, and Bangladesh’s troubles added pressure, but Europe has always been our beacon of hope,’ he told reporters.
The agreement isn’t just about exports. Surat’s manufacturers stand to benefit from importing high-quality European machinery, replacing outdated Chinese equipment. This upgrade will boost production efficiency and elevate the global competitiveness of Indian textiles.
Europe’s appetite for ready-made garments is voracious, with India previously capturing just 9% of the market. Post-FTA, Surat’s man-made fiber prowess—known worldwide—will fuel a surge in exports. The city’s textile industry, valued at around ₹150 lakh crore, ranks second only to agriculture in revenue generation.
Traders like Sushil Gupta call it a milestone, crediting Prime Minister Narendra Modi’s vision. ‘US trade wars hurt us badly, but this deal injects new life into exports,’ Gupta said. Johnny Rathod echoed the sentiment, praising the shift to superior European tech and thanking Modi for prioritizing the sector.
As global supply chains realign, this FTA positions Indian brands for stronger footholds in international markets. Surat’s traders are optimistic about a brighter future, with enhanced quality, expanded markets, and sustained growth on the horizon.
