27 January 2026 | New Delhi
The Indian apparel export industry has welcomed the successful conclusion of the India–European Union Free Trade Agreement (FTA), calling it a landmark development that could significantly reshape the sector’s global competitiveness. Industry leaders believe the agreement will unlock unprecedented growth opportunities, particularly in one of the world’s largest apparel markets.
Commenting on the agreement, Dr A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), said industry sentiment is overwhelmingly positive following the announcement. He described the India–EU FTA as a historic milestone that is expected to provide a strong and sustained boost to India’s apparel exports. According to industry estimates, exports to the European Union could double over the next three years as the agreement becomes operational.
“The zero-duty access for Indian garments and clothing in the EU market will decisively turn the tables in India’s favour,” Dr Sakthivel said. “This agreement enhances our competitiveness in Europe and represents a significant step forward in India’s journey towards Viksit Bharat.”
Industry projections suggest that Indian apparel exports to the EU could witness annual growth of 20–25% after the FTA comes into force, compared to the current growth rate of just over 3% in the region. The removal of tariff barriers is expected to shift competition away from price-led strategies towards quality, design innovation, compliance, and sustainability, areas where Indian manufacturers have made substantial progress in recent years.
Dr Sakthivel noted that the FTA eliminates tariffs across 100% of apparel tariff lines, providing Indian exporters seamless access to all EU member states. The European Union remains the world’s largest apparel importer, with total imports valued at USD 202.8 billion in FY 2024–25. Key markets such as Germany, France, Spain, and Italy already source significant volumes of garments from India, and the agreement is expected to further deepen sourcing relationships with these economies.
At present, the EU accounts for around 28% of India’s apparel exports, yet India holds only a 2.9% share of the EU’s overall apparel import market. The FTA is expected to correct this imbalance by offering Indian exporters a level playing field against competing countries such as Bangladesh, Turkey, and Vietnam, which have so far enjoyed duty-free or preferential access to the EU market.
AEPC expressed its deep appreciation to the Government of India for concluding the long-awaited agreement at a time of global economic uncertainty and geopolitical volatility. Dr Sakthivel conveyed his sincere gratitude to the Hon’ble Prime Minister of India for his visionary leadership, as well as to the Hon’ble Union Minister of Commerce and Industry for steering the negotiations to a successful conclusion.
Industry stakeholders believe the India–EU FTA will not only accelerate export growth but also strengthen employment, encourage higher value addition, and reinforce India’s position as a reliable and sustainable sourcing destination in the global apparel supply chain.
