The completion of the India-EU Free Trade Agreement (FTA) has ignited jubilation among Surat’s textile merchants, who see it as a major boost amid challenging global trade dynamics. As India’s premier textile hub, Surat is poised to reap significant rewards from this breakthrough.
American tariffs had long been a thorn in the side of Indian exporters, causing substantial losses. Bangladesh’s industry woes compounded the issue. Yet, the EU deal flips the script, eliminating duties and unlocking vast opportunities in garment exports where demand remains robust.
In an exclusive interview, Kailash Hakim of the Federation of Textile and Trade Association highlighted the government’s strategic resilience. ‘US policies failed against India’s smart diplomacy. Europe’s technical edge in textile machinery will revolutionize our operations,’ he noted.
Previously reliant on Chinese imports, Surat factories can now source cutting-edge European machines duty-free. This will enhance fabric quality and production speeds, aligning Indian output with international standards.
India supplied about 9% of Europe’s garments before; now, with zero tariffs, Surat’s expertise in synthetic fibers positions it for explosive growth. The local industry, a ₹150 lakh crore behemoth, drives immense national revenue post-agriculture.
Sushil Gupta labeled the FTA a pivotal moment, attributing success to PM Modi’s leadership. ‘It counters US tariff damages and accelerates exports,’ he said. Fellow trader Johnny Rathod emphasized the market access and machinery upgrades, expressing heartfelt gratitude to the Prime Minister.
Looking ahead, industry leaders predict a renaissance for Indian textiles. Stronger brands, higher exports, and technological leaps will cement Surat’s global stature, fostering economic prosperity for years to come.