Currently, the import duties for Indian textiles in the EU range from 0 to 12%.
“Achieving zero-duty access in textiles and clothing—affecting all tariff lines and reducing tariffs by as much as 12%—will unlock the EU’s ₹22.9 lakh crore ($263.5 billion) import market,” the ministry stated.
This sector, which ranks as the second-largest employer after agriculture, will also face competition from Bangladesh, which has zero duty access in the EU market.
“Building on India’s existing ₹3.19 lakh crore ($36.7 billion) textile and apparel exports, including $7.2 billion to the EU, this access would greatly enhance opportunities, especially in yarn, cotton yarn, man-made fiber apparel, ready-made garments, men’s and women’s clothing, and home textiles,” the ministry remarked.
Such developments would allow MSMEs to grow, create jobs, and reinforce India’s standing as a dependable, sustainable, and high-value sourcing partner, it noted.
Also Read: India-EU FTA redraws India’s trade map, unlocking Europe while ring-fencing sensitive sectors
In reference to the FTA, the Apparel Export Promotion Council (AEPC) stated that industry forecasts predict a growth of 20–25% year-on-year in Indian apparel exports following the implementation of the FTA, in contrast to the current growth rate of 3.01% in the EU market.
AEPC Chairman A Sakthivel mentioned that the FTA would remove tariffs on 100% of apparel tariff lines, significantly improving market access for all EU member countries.
The EU stands as the world’s largest apparel importer, with total apparel imports projected at $202.8 billion for 2024-25.
Countries such as Germany, France, Spain, and Italy, which are major garment importers in the EU, substantially source from India, and this agreement will further elevate India’s apparel exports to these markets, he added.
