Union Minister of Commerce and Industry Piyush Goyal has said that the proposed India-European Union Free Trade Agreement could significantly transform India’s export landscape, particularly in the textile and apparel sector. Speaking in an interview with news agency ANI, the minister described the agreement as a game-changer for exports, employment generation, and domestic manufacturing while ensuring protection for farmers and sensitive sectors.
Goyal stated that the agreement would place India on an equal competitive footing with countries such as Bangladesh and Vietnam, which currently enjoy duty-free access to the European Union under special trade arrangements. Indian textile exporters, on the other hand, have historically faced import duties of up to 12 per cent in the European market, putting them at a cost disadvantage.
According to the minister, the elimination of these duties under the proposed FTA would make Indian textile and apparel products more price-competitive in Europe. This is expected to lead to increased export volumes, expansion of manufacturing capacity, and the creation of large-scale employment across the textile value chain, including spinning, weaving, garmenting, and allied industries.
Goyal emphasised that the agreement would strongly support the Make in India initiative by encouraging global buyers to source more products from India. He added that increased exports would drive investments in modern manufacturing facilities and strengthen India’s position as a reliable global supplier.
Addressing concerns around domestic interests, the minister clarified that the FTA would fully protect Indian farmers and key sectors such as automobiles. He said the government has taken a calibrated approach to negotiations, ensuring that sensitive areas remain safeguarded while opening up opportunities in export-oriented industries.
The minister also highlighted that the agreement could help Indian exporters address emerging challenges related to climate and sustainability norms. With the European Union introducing measures such as carbon-related regulations, the FTA could help reduce compliance costs and protect Indian exports from potential carbon-related trade barriers.
India’s textile sector is one of the country’s largest employers and a major contributor to export earnings. Industry experts believe that duty-free access to the European market could unlock significant growth, particularly for small and medium enterprises that currently struggle to absorb higher tariff costs.
Goyal noted that Bangladesh and Vietnam have built strong export bases in textiles partly due to their preferential access to key markets. By securing similar access through the India-EU FTA, Indian exporters could regain market share and expand their presence in Europe.
The proposed agreement is also expected to have a multiplier effect on related sectors such as logistics, packaging, and design services. Increased export activity could strengthen regional manufacturing clusters and boost income levels in textile-producing states.
While negotiations are still ongoing, the minister expressed confidence that the final agreement would balance market access with national interests. He reiterated that the government remains committed to creating a fair and competitive trade environment that benefits Indian businesses, workers, and farmers.
If finalised, the India-EU Free Trade Agreement could mark a significant milestone in India’s trade policy, positioning the country as a stronger player in global manufacturing and exports, particularly in the highly competitive textile sector.
