India–EU Trade Deal to Provide Zero‑Duty Access for Indian Textiles

India’s textile and apparel sector is set to benefit significantly from the India–EU Free Trade Agreement, which brings immediate tariff elimination. The move removes a long‑standing duty disadvantage that limited India’s ability to scale exports to the European Union.

The EU is India’s second‑largest export destination for textiles and apparel, yet India’s market share has remained modest despite strong global demand. With the FTA coming into force, the sector gains a more level playing field against key competitors.

Tariff Removal and Competitive Relief

Under the new agreement, tariffs on Indian textiles, apparel and clothing will drop to 0% from day one. Earlier, exports faced duties of up to 12%, which had significantly reduced India’s cost competitiveness.

This structural disadvantage allowed rivals such as Bangladesh, Pakistan and Turkey to capture a larger share of the EU market due to their lower or zero‑duty access. Removing tariffs across all textile and apparel lines positions India to compete more effectively in categories where it previously lost ground.

Access To a Large EU Market

The tariff elimination opens direct access to the EU’s textile and apparel import market valued at $263.5 billion. India currently exports about $7–7.2 billion worth of textile and apparel products to the region, representing only a small share of overall EU imports.

Expanding this share presents a substantial opportunity for Indian manufacturers and exporters. The agreement is expected to help bridge the gap between India’s existing presence and the scale of demand within the EU.

Structural Advantages for Industry Expansion

With duties removed, India’s cost competitiveness improves immediately, enhancing export prospects across product categories. The shift strengthens India’s ability to supply both high‑value and volume‑driven textile segments demanded in Europe.

The relief arrives at a crucial time as manufacturers continue investing in capacity expansion, product innovation and compliance with global sustainability norms. The agreement thus aligns India’s textile ecosystem with one of the world’s most lucrative consumer markets.

Read More: India–EU Free Trade Agreement Signed, Opening Vast Opportunities for Trade and Jobs.

Conclusion

The India–EU FTA marks a major turning point for India’s textile and apparel exporters by removing a decade‑long tariff barrier. With zero duties, improved competitiveness and access to a large consumer base, the sector is positioned for substantial expansion.

As global demand for textiles continues to evolve, the FTA provides India a clear pathway to strengthen its presence in the European market. The agreement is expected to support broader industry growth while enhancing India’s role in global textile trade.

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