New Delhi is buzzing with optimism as the India-European Union Free Trade Agreement (FTA) opens floodgates for key industries. Experts hail it as a game-changer for textiles, chemicals, pharmaceuticals, and jewelry sectors, promising boosted exports, jobs, and India’s rise as a reliable global supplier.
Bhadesh Dodhiya, Director at Dodhiya Synthetics Limited, points out that the EU imports around $250 billion in textiles annually, yet India’s share lingers below 10%. Neighboring competitors already enjoy duty-free access, pushing their exports to $30-40 billion. This FTA levels the playing field, positioning India amid global supply chain shifts driven by geopolitical tensions.
“Europe seeks stable partners, and India fits perfectly with its political stability, young workforce, and vast domestic market,” Dodhiya told reporters. Under PM Narendra Modi’s leadership, recent FTAs have supercharged textiles, but industries must align with EU standards on sustainability and quality.
Dodhiya’s firm, focused on plastic recycling and textile raw materials, already sends 20% of exports to Europe despite duties. Post-FTA, expect upgraded portfolios, competitive pricing, and a push towards circular economy practices where Europe leads. Government support for MSMEs under Atmanirbhar Bharat could solidify India’s export base.
In jewelry, Rohit Gupta, Director at ACPL Exports SEZ, calls the deal a milestone. This labor-intensive sector, especially handmade pieces, stands to gain immensely. Jaipur’s gem-cutting hubs could become manufacturing powerhouses for high-value markets like Italy, France, and Germany.
“Duty-free components from Europe, value addition in India—it’s a win-win,” Gupta says. With EU’s 27 nations as a unified market, India leverages cheap labor, creativity, and craftsmanship to capture shares from fading hubs in Poland and Romania. This FTA isn’t just trade; it’s a strategic leap for employment and economic resilience.