New Delhi’s landmark free trade agreement with the European Union has unlocked unprecedented opportunities for India’s labor-intensive industries. Signed on Tuesday, the India-EU FTA eliminates duties on key sectors like leather and footwear, gems and jewelry, and textiles, paving the way for seamless exports to 27 European nations.
Commerce and Industry Minister Piyush Goyal hailed the deal on social media, emphasizing its potential to supercharge exports from these vital sectors. ‘This agreement will propel our labor-intensive industries to new heights, driving exponential export growth,’ he posted on X.
Textiles and apparel stand to gain the most, with zero duties granting Indian exporters direct access to the EU’s $263 billion market. This move enhances competitiveness, empowers weavers, and positions India as a dominant player in Europe’s fashion landscape.
Leather and footwear exporters rejoice as duties drop from 17% to zero, opening doors to a $100 billion European market. Meanwhile, the gems and jewelry sector eyes a $79 billion premium segment, bolstered by preferential entry into the EU’s massive $2 trillion industrial marketplace.
Prime Minister Narendra Modi described the FTA not merely as a trade pact, but as a blueprint for shared prosperity. ‘This historic deal simplifies market access for our farmers and MSMEs, sparks manufacturing innovation, and strengthens services collaboration,’ he stated.
Industry leaders predict a surge in jobs and investments, with small-scale producers set to thrive. As negotiations culminate in this win-win accord, India’s export engine revs up, promising economic momentum across the board.