Mumbai’s textile powerhouses are buzzing with excitement over the newly announced India-EU Free Trade Agreement (FTA). Industry leaders hail it as a monumental game-changer that will redraw the map of India’s apparel and garment sector within the next two to three years.
Premal Udani, Chairman of the Export Promotion Council (AEPC), shared his insights in an exclusive interview. ‘This deal is set to transform our textile industry completely,’ he asserted. Projections indicate a staggering 30-40% surge in exports over the next two years alone, fueled by the immediate elimination of the 11% duty imposed by the EU on Indian fabrics and garments.
This duty waiver will sharpen India’s competitive edge in the European market, positioning it as a formidable rival to powerhouses like Bangladesh. Udani emphasized that enhanced competitiveness will unlock new avenues for growth, propelling the sector into a new era of prosperity.
Echoing these sentiments, AEPC member Ramu AR highlighted the deal’s potential to generate massive employment opportunities. Export hubs like Tirupur stand to gain immensely, with ambitions to hit the Rs 1 lakh crore export milestone now within reach.
Prime Minister Narendra Modi unveiled the FTA on Tuesday, describing it not merely as a trade pact but as a blueprint for shared prosperity. Encompassing all 27 EU nations, this historic agreement marks India’s largest FTA to date.
PM Modi elaborated that the pact will streamline access to European markets for Indian farmers and MSMEs, spark fresh manufacturing opportunities, and fortify service sector collaborations. Beyond trade, it promises to boost investments, foster innovation partnerships, and reinforce global supply chains.
As negotiations culminate successfully, the Indian textile fraternity gears up for an unprecedented boom. Stakeholders anticipate ripple effects across the value chain, from raw cotton farmers to high-street fashion brands in Europe. This FTA isn’t just about numbers—it’s a catalyst for sustainable industrial evolution.
