In the bustling industrial hub of Vapi, Gujarat, a wave of optimism is sweeping through the business community following the landmark Free Trade Agreement (FTA) between India and the European Union. This deal comes as a much-needed lifeline for local industries battered by recent US tariffs under the Trump administration.
Vapi, renowned for its cluster of over 10,000 small and medium enterprises, specializes in chemicals, pharmaceuticals, textiles, engineering, and paper products. Many of these firms have longstanding export ties worldwide, but escalating American trade barriers have forced them to seek alternatives. The India-EU FTA opens up lucrative European markets, promising to offset losses and inject fresh momentum into exports.
Dr. Kamal Wasi, Director at Mangalam Drugs, expressed unbridled enthusiasm. ‘This agreement unlocks Europe’s vast market for our pharmaceutical sector without tariff hurdles,’ he said. As India’s leading producer of generic medicines, Vapi’s pharma units stand to gain immensely from seamless access to EU countries, reversing the setbacks from US duties.
Prominent industrialist Shard Thakar hailed the pact as historic, crediting Prime Minister Narendra Modi’s leadership. ‘It’s the most advantageous trade deal yet, stabilizing our industries by easing commerce with Europe and compensating for American market disruptions,’ Thakar noted.
Satyish Patel, President of Vapi Industries Association, echoed these sentiments, calling it the ‘mother of all deals.’ He highlighted benefits across pharma, pesticides, and other sectors, predicting a surge in direct trade opportunities. ‘This milestone will propel Vapi’s growth and align with the vision of a developed India,’ Patel affirmed.
The agreement not only facilitates tariff-free exports but also simplifies imports, fostering a balanced trade ecosystem. Local businesses anticipate stronger foreign exchange earnings, job creation, and technological upgrades, positioning Vapi as a key player in global supply chains.