Indian Apparel Exporters Welcome India–EU FTA, See Strong Growth Potential

-Bilateral trade to double in next three years: Chairman AEPC

India’s apparel export industry has welcomed the conclusion of the India–EU Free Trade Agreement (FTA), viewing it as a development that could significantly influence export performance in the coming years.

Commenting on the agreement, Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) said,
“The industry sentiments are upbeat after the successful conclusion of the India–EU deal. It is a landmark moment for the Indian apparel industry. This deal will provide a significant boost to apparel exports which is expected to double in next three years. This marks a giant leap in India’s journey towards Viksit Bharat. The zero-duty access of Indian garments and clothing to the EU market will decisively turn the tables in India’s favour enhancing our competitiveness in the European market.”

According to industry estimates, Indian apparel exports could record annual growth of 20–25% once the FTA becomes operational, compared with the current growth rate of 3.01% in the EU market.

Dr. Sakthivel further explained that the agreement would allow Indian companies to compete more effectively on the basis of product quality, design capability, and sustainability standards, rather than primarily on price.

He also noted,
“The FTA eliminates tariff on 100% of apparel tariff lines which will enhance market access to all member countries of the EU.”

The European Union is the world’s largest importer of apparel, with total imports valued at USD 202.8 billion in FY 2024–25. Major EU markets such as Germany, France, Spain, and Italy already source significant volumes from India, and the agreement is expected to further strengthen trade flows with these countries.

At present, the EU accounts for about 28% of India’s apparel exports, while India holds only a 2.9% share of the EU apparel import market. With the removal of tariffs on Indian garments, domestic exporters are expected to gain improved market access and a more balanced competitive position compared with suppliers from Bangladesh, Turkey, and Vietnam, which already benefit from preferential or duty-free access to the EU.

AEPC expressed its appreciation to the Government of India for finalising the long-pending agreement at a time of global economic uncertainty. Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) conveyed his gratitude to the Hon’ble Prime Minister of India for his leadership and to the Hon’ble Union Minister of Commerce and Industry for guiding the negotiations to a successful conclusion.