In a game-changing development, India’s free trade pact with the European Union slashes import duties to zero for textiles, leather goods, and jewelry, targeting Europe’s lucrative markets. The agreement, finalized Tuesday, marks a pivotal shift for export-oriented industries reliant on skilled labor.
Minister Piyush Goyal’s announcement on X spotlighted the transformative impact: accelerated growth for labor-heavy sectors through duty-free access to 27 EU countries. This strategic move is poised to reshape India’s global trade footprint.
The textile industry, a cornerstone of Indian manufacturing, now penetrates the EU’s $263 billion apparel arena without barriers. Exporters anticipate heightened rivalry with global peers, while domestic weavers gear up for empowerment and expansion.
Leather and footwear benefit immensely, with duties eliminated from 17%—unlocking a $100 billion opportunity. Gems and jewelry players secure entry into a $79 billion high-end market, complemented by priority access to the EU’s $2 trillion industrial hub.
Prime Minister Modi framed the FTA as more than commerce: a pathway to mutual affluence. It eases European market entry for farmers and SMEs, fosters manufacturing jobs, and deepens services ties, heralding a new era of bilateral economic synergy.