Mumbai’s business circles are buzzing with excitement over the landmark Free Trade Agreement (FTA) between India and the European Union. Dr. Sanjeev Sarn, former Chairman of the Manmade and Technical Textiles Export Promotion Council, hailed the deal as truly historic during an exclusive interview.
India stands tall as a politically stable nation with robust governance and inherent strengths, particularly in textiles and apparel, Dr. Sarn emphasized. ‘This agreement opens doors to a massive market,’ he said. ‘It will counter tariff barriers imposed by other nations, paving the way for expanded market access, fresh investments, joint ventures, and a surge in employment opportunities.’
The pact promises balanced benefits despite the give-and-take in international deals. Labor-intensive sectors like textiles, garments, leather, gems, and jewelry will thrive with zero-duty access to the EU, making Indian products highly competitive.
Announced on January 27 after years of negotiations, this ‘Mother of All Deals’ links two economic powerhouses, encompassing nearly 2 billion people and a quarter of global GDP. Originating in 2007, stalled in 2013, and revived in 2022, the FTA slashes tariffs on over 99% of EU imports from India and 93-96.6% of Indian imports from the EU.
For India’s export-driven industries, this is a game-changer. Expect a boom in manufacturing, innovation, and job creation as European markets welcome Indian goods with open arms. The agreement not only boosts trade but also strengthens India’s position in the global economy, signaling stability and strength to investors worldwide.