EU FTA Boosts Indian Textile Exports: Zero Tariff Opens $263.5 Billion Market

• The India-EU Free Trade Agreement (FTA), announced on January 27, reduces tariffs on Indian textile exports from 12% to zero, enhancing competitiveness.
• Zero duty makes Indian garments significantly cheaper in the EU, potentially leading to larger buyer contracts and increased factory utilization.
• The FTA provides India access to the EU's $263.5 billion textile import market, where current Indian exports are only $7.2 billion.
• Key textile hubs like Tiruppur, Ichalkaranji, Surat, Ludhiana, and Hyderabad-Warangal are expected to benefit from increased EU orders and job creation.
• Despite tariff removal, Indian exporters must meet Europe's stringent environmental and social compliance standards, including traceability and responsible practices.

Why It Matters: The India-EU FTA eliminates tariffs, giving Indian textiles a competitive edge in the vast European market.