New Delhi: The Free Trade Agreement (FTA) between India and the European Union (EU), signed on Tuesday, is set to provide a significant boost to labour-intensive sectors such as leather and footwear, gems and jewellery, and textiles.
Under this agreement, these sectors can now export to the 27 EU member countries with zero customs duty, enhancing their access to the European market.
Union Commerce and Industry Minister Piyush Goyal, in a post on the social media platform X, stated that the India-EU FTA will accelerate growth in exports from these labour-intensive sectors, providing them with greater opportunities.
The minister highlighted that the trade deal will eliminate duties on India’s textile and apparel exports to Europe. This will grant Indian exporters direct entry into the EU’s $263 billion textile market.
This move is expected to improve the competitiveness of Indian exporters and empower Indian weavers and artisans.
According to the minister, the duty on leather and footwear exports has been reduced to zero from the earlier 17 per cent. This will open up opportunities for Indian exporters to access the $100 billion European market duty-free.
The agreement will also benefit the gems and jewellery sector by opening new avenues in Europe’s $79 billion premium market. Additionally, Indian exporters will receive preferential access to the EU’s $2 trillion industrial market.
Prime Minister Narendra Modi described the India-EU FTA as more than just a trade agreement, calling it a new blueprint for shared prosperity.
He said the historic deal will facilitate easier access for farmers and small industries to European markets, create new manufacturing opportunities, and strengthen cooperation in the services sector.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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