EU to Seal Trade Deal With India, Boosting Apparel, Textile Prospects |
The European Union is set to formalise its largest trade agreement to date with India on 27 January, in a move expected to significantly deepen economic ties between Brussels and New Delhi and reshape trade flows across multiple sectors, including apparel and textiles.
According to a report by European news outlet Euractiv, European Commission President Ursula von der Leyen informed Members of the European Parliament during a closed-door briefing that the agreement would be concluded later this month. Von der Leyen and European Council President António Costa are scheduled to sign the agreement alongside Indian Prime Minister Narendra Modi during their visit to New Delhi.
Von der Leyen described the agreement as a major signal of the European Union’s trade policy ambitions. The deal would be the bloc’s largest free trade agreement to date, granting enhanced access to a market representing roughly a quarter of the world’s population.
The agreement is expected to have particular significance for the apparel and textile sector. The European Union is currently India’s second-largest export destination for apparel, accounting for nearly 27% of India’s total garment exports. Annual apparel shipments from India to the EU are valued at more than US $ 7.5 billion, while total textile and clothing exports to the bloc—including yarn, fabrics and home textiles—are estimated to exceed US $ 11 billion annually.
At present, Indian apparel exports to the EU face import duties ranging from 8% to 12%, reducing price competitiveness compared with suppliers such as Bangladesh, Vietnam and Turkey, which benefit from preferential or duty-free access under existing trade arrangements. Industry stakeholders expect an FTA to significantly lower or eliminate these tariffs, improving India’s position in the European sourcing market.
UK and European apparel brands, including Marks & Spencer, Primark and Next, have already begun preliminary negotiations with Indian suppliers as the agreement moves closer to ratification. Buyers have increased factory audits and supplier assessments in major manufacturing hubs such as Tirupur in Tamil Nadu, indicating plans to initiate or expand sourcing from India once the agreement comes into force.
Industry analysts say the deal could accelerate a shift in European sourcing strategies, particularly as brands seek to diversify supply chains amid rising costs and regulatory pressures in other manufacturing regions.
read more :- US market slow, India's hold in China strong
Regards
Team Sis
Any query plz call 9111677775
https://wa.me/919111677775
