India–EU FTA Nears Finish; CTA Apparels Sees Export Boost
India–EU FTA Nears Finish; CTA Apparels Sees Export Boost
As negotiations on the India–EU Free Trade Agreement (FTA) enter an advanced phase, CTA Apparels has welcomed the development, calling it a potential turning point for India’s apparel export competitiveness in European markets.
CTA Apparels has welcomed the positive momentum surrounding the India–EU Free Trade Agreement (FTA), following confirmation from the Government of India that negotiations are progressing constructively and nearing completion. Union Commerce and Industry Minister Shri Piyush Goyal recently described the discussions as “very positive,” indicating that both India and the European Union are moving toward a mutually beneficial agreement.
The European Union currently stands as India’s second-largest export destination for apparel, accounting for nearly 27% of total garment exports, with annual shipments valued at over USD 7.5 billion. However, Indian apparel exports continue to face import duties ranging between 8% and 12% in the EU—placing domestic manufacturers at a disadvantage compared to competitors such as Bangladesh, Vietnam, and Turkey, which benefit from preferential trade access.
Industry experts believe that a well-calibrated India–EU FTA could help narrow this gap by reducing or eliminating tariffs, allowing Indian exporters to compete more effectively on price while moving up the value chain. Trade projections suggest that such an agreement could drive a 20–25% increase in India’s apparel exports to Europe over the next three years.
Beyond tariff relief, the proposed FTA’s emphasis on rules of origin, market access, sustainability benchmarks, and technical standards is expected to create a more predictable and investment-friendly environment across the textile and apparel value chain. For sustainability-led manufacturers such as CTA Apparels—known for ethical sourcing, energy-efficient operations, and advanced manufacturing systems—the agreement presents an opportunity to expand long-term partnerships and deepen India’s footprint in premium European markets.
Dr. Mukesh Kansal, Chairman, CTA Apparels, said:
“The progress on the India–EU FTA is a welcome development for India’s apparel sector. The European Union is one of our most important partners, and a fair, forward-looking trade agreement will unlock new opportunities for growth, technology adoption, and sustainable value creation. CTA Apparels stands fully aligned with India’s vision of strengthening global trade partnerships rooted in quality, transparency, and innovation.”