India-EU FTA: $2 Billion Boost for Textile Exporters, Leveling Playing Field

• The India-EU Free Trade Agreement (FTA) is nearing finalization, with a potential signing on January 27.
• The FTA could offer Indian textile and apparel exporters a $1.5–2 billion annual boost by eliminating tariffs ranging from 6-20%.
• Currently, Indian exporters face a disadvantage against competitors like Bangladesh and Vietnam, who enjoy zero-duty access to the EU.
• The agreement aims to provide better market access, crucial as Indian textile exports to the US face higher tariffs.
• The EU is India's largest trading partner for goods, with total trade reaching $136.53 billion in FY25.

Why It Matters: The India-EU FTA is set to provide a significant competitive advantage and boost exports for Indian textile manufacturers.