New Delhi: The Free Trade Agreement (FTA) between India and the European Union (EU) is expected to open new avenues for growth in various industries. Considered a historic step for India’s economy and exports, the agreement is set to benefit labour-intensive sectors such as textiles, apparel, footwear, and leather the most. Experts believe this deal will not only increase exports but also strengthen employment, investment, and the ‘Make in India’ initiative.
Kumar Duraiswami, Joint Secretary of the Tirupur Exporters Association, described the 20-year trade agreement with Europe as the ‘mother of all deals.’ Speaking to news agencies, he said that with government support and other global agreements, this deal will play a key role in increasing India’s textile exports to $40 billion by 2030. Currently, India’s textile industry is valued at around $13 billion, but Duraiswami is confident that this target is achievable under existing policies and the new FTA.
Duraiswami added that Tirupur currently exports knitwear worth about ₹45,700 crore, which accounts for nearly 68 percent of the country’s total knitwear exports. Exports to Europe stand at approximately ₹25,000 crore and could rise to ₹50,000 crore by 2030. He also noted that while US tariff policies had dampened exporters’ morale, new opportunities in Europe have revitalised the industry.
He highlighted that many major European retailers are now planning to set up factories directly in India and expand capacities. Duraiswami also praised the international textile summit organised by the Tamil Nadu government, which is enhancing the global recognition of the state’s textile industry. He said Tamil Nadu is likely to continue its leading role as India’s textile growth engine in the coming decade.
Rafique Ahmed, Chairman of Kothari Industrial Corporation Limited, called the India-EU FTA a dream come true. He pointed out that the EU represents about 25 percent of the world’s GDP, making this agreement a significant achievement for India. Ahmed emphasised that the deal is especially important for the footwear and leather sectors, which provide large-scale employment opportunities for women.
Ahmed further explained that in this sector, employment generation far exceeds investment. For example, an investment of ₹1,500 crore can create around 25,000 jobs, which is rare in other industries. He expressed hope that the government will introduce special packages for the footwear, leather, and accessories sectors to boost both jobs and women’s empowerment.
Dr Sanjeev Saran, former Chairman of the Manmade and Technical Textiles Export Promotion Council, described the deal as a ‘fantastic and historic’ step for India. He said the agreement will open access to a large market and help compensate for losses from countries that have used tariffs as trade barriers. The FTA is expected to bring new investments, joint ventures, and domestic employment opportunities.
Dr Saran added that the entry into the EU market will enhance the diversity and quality of India’s product basket. Labour-intensive sectors like textiles, apparel, leather, and gem-jewellery will receive a significant boost, leading to rapid employment growth. However, he noted that Indian factories will need to prepare themselves to meet Europe’s strict regulations, quality, and technical standards.
He also mentioned that India’s political stability, strong governance, and core sector strengths like textiles make the country very attractive to global investors. Amidst instability in the Middle East and other regions, India is increasingly seen as a reliable option.
Mukesh Kumar Gomber, Chairman of the Carpet Export Promotion Council (CEPC), said the EU FTA is a major milestone for India amid tariff challenges from the US. The deal will provide the Indian textile industry with access to new machinery, advanced technology, and greater competitiveness in global markets. Particularly, value-added textile and carpet exports are likely to find a strong market in Europe.
Experts agree that the India-EU FTA is a balanced agreement involving ‘give and take,’ with significant benefits for India’s labour-intensive sectors. It is expected to not only increase exports but also generate millions of new jobs, further strengthening India’s position in the global manufacturing and supply chain landscape.
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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