India-EU FTA: How States Will Benefit from the "Mother of All Deals"

India
M
Moneycontrol•27-01-2026, 15:43
India-EU FTA: How States Will Benefit from the "Mother of All Deals"
- •The India-EU Free Trade Agreement (FTA) is projected to add Rs 6.4 lakh crore to India's exports to the EU, opening markets for MSMEs, manufacturers, farmers, and professionals.
- •The FTA proposes eliminating 9,425 tariff lines, boosting market access for labor-intensive sectors like textiles, apparel, leather, gems and jewelry, and high-tech exports including engineering goods and pharmaceuticals.
- •Maharashtra's Pune (engineering, electronics, pharma) and Mumbai (gems and jewelry) will see increased orders, while Gujarat's Surat (textiles, diamonds) and Bharuch-Vadodara (chemicals) will scale up exports.
- •Tamil Nadu's Tiruppur (apparel) and Vellore–Ambur (leather) will gain from tariff reductions, and West Bengal's North Bengal (Darjeeling tea) and Digha-Haldia (seafood) will access EU markets.
- •States like Kerala (spices, seafood), Karnataka (advanced manufacturing), Andhra Pradesh (seafood, pharma), Telangana (textiles, pharma), Punjab (garments, sports goods), Rajasthan (jewelry, handicrafts), and Uttar Pradesh (leather, crafts) are also set for significant export growth and job creation.
Why It Matters: The India-EU FTA is a major growth opportunity for Indian states, boosting exports across diverse sectors.
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