The India-EU Free Trade Agreement, freshly inked, is poised to unleash a tidal wave of opportunities for India’s beleaguered textile and apparel industry. Experts predict a complete overhaul of the sector’s landscape in just 2-3 years, with export figures potentially skyrocketing by 30-40% in the initial phase.
In a candid conversation, AEPC Chairman Premal Udani painted a vivid picture of the future. The scrapping of the 11% EU import duty on Indian textiles will level the playing field overnight. ‘We’ll give Bangladesh a run for its money in Europe,’ he declared confidently.
This strategic move enhances India’s cost advantages, making its garments more attractive to discerning European buyers. Udani forecasts rapid expansion as manufacturers ramp up production to meet surging demand.
AEPC’s Ramu AR added that the benefits extend far beyond balance sheets. ‘Massive job creation is on the horizon,’ he noted, spotlighting Tirupur’s quest for Rs 1 lakh crore in annual exports. The region, a knitwear epicenter, could see factories humming 24/7.
Prime Minister Narendra Modi’s announcement on Tuesday framed the FTA as more than commerce—it’s a vision for mutual affluence. Spanning 27 EU countries, it’s India’s biggest trade pact ever, easing market entry for farmers, small businesses, and service providers alike.
The Prime Minister underscored its role in igniting manufacturing renaissance, deepening services ties, attracting investments, and nurturing cutting-edge collaborations. By strengthening supply chains, the deal positions India as a pivotal player in global trade dynamics.
Industry watchers are already recalibrating strategies. From upgrading machinery to skill development programs, the sector is mobilizing for this windfall. The India-EU FTA signals the dawn of a golden age for textiles, promising economic dividends for generations.