New Delhi is buzzing with optimism as the India-EU Free Trade Agreement (FTA) unlocks unprecedented opportunities for the nation’s industrial sectors. Experts hail this pact as a game-changer, particularly for labor-intensive industries like textiles, apparel, footwear, and leather. This landmark deal is poised to supercharge exports, create millions of jobs, and bolster the ‘Make in India’ initiative, positioning India as a global manufacturing powerhouse.
Kumar Duraaiswamy, Joint Secretary of the Tirupur Exporters Association, describes the 20-year trade agreement with Europe as the ‘mother of all deals.’ Speaking exclusively, he revealed that with government support and complementary global pacts, India’s textile exports could soar to $40 billion by 2030. Currently valued at around $13 billion, the sector stands on the cusp of explosive growth thanks to this FTA.
Tirupur, the knitwear capital, already accounts for 68% of India’s total knitwear exports, raking in 45,700 crore rupees annually. Exports to Europe alone hit 25,000 crore rupees, with projections to double to 50,000 crore by the decade’s end. Duraaiswamy noted that while U.S. tariff policies dampened spirits, Europe’s open doors are injecting fresh vitality into the industry.
Major European retailers are now scouting Indian factories for direct investments and expansions. Tamil Nadu’s International Textile Summit has further elevated the state’s global profile, cementing its role as India’s textile growth engine for the coming decade.
Rafiq Ahmed, Chairman of Kothari Industrial Corporation, calls the FTA a ‘dream come true.’ Representing 25% of global GDP, the EU market opens vast avenues, especially for footwear and leather sectors that empower women on a massive scale. Ahmed highlighted that a 1,500 crore rupee investment could generate 25,000 jobs—efficiency unmatched in most industries. He urges the government to roll out targeted packages for these sectors to amplify employment and women’s empowerment.
Dr. Sanjeev Saran, former Chairman of the Manmade and Technical Textiles Export Promotion Council, labels it a ‘fantastic and historic’ step. This deal compensates for losses from tariff-heavy markets, fostering new investments, joint ventures, and domestic jobs. India’s product diversity and quality will elevate, but factories must gear up for Europe’s stringent regulations.
Political stability and robust governance make India irresistibly attractive amid Middle East volatility. Mukesh Kumar Gomber, Chairman of CEPC, views the FTA as a milestone amid U.S. challenges, enabling access to advanced machinery and value-added exports like carpets.
In essence, this balanced ‘give and take’ FTA promises surging exports, job creation, and a fortified spot in global supply chains for India’s labor-intensive sectors.