Apparel industry hail India- EU FTA - Bilateral trade to double in next three years: Chairman AEPC.
The apparel exports industry hailed the India- EU FTA. Speaking on this historic deal Chairman AEPC, Dr. A Sakthivel 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.”
Industry projections estimate that Indian apparel exports could grow by 20–25% year on year after operationalization of the FTA as against the current growth rate of 3.01% in the EU market.
This FTA enables Indian firms to compete more in terms of quality, design, and sustainability parameters rather than in terms of price, Chairman AEPC informed.
Further Dr. Sakthivel noted, “The FTA eliminates tariff on 100% of apparel tariff lines which will enhance market access to all member countries of the EU.” EU is the world's largest apparel importer with total apparel import worth USD 202.8 billion in FY 2024-25. Some of the major garment importing countries of the EU like Germany, France, Spain and Italy source substantially from India and this deal will further boost our apparel exports to these economies, he added.
While the EU accounts for roughly 28% share in India’s apparel exports, India’s share is only 2.9% in the EU’s apparel market. With the elimination of tariff on Indian apparel products, the Indian apparel industry gain immensely as it will get a level playing field vis-à-vis its competing countries like Bangladesh, Turkey and Vietnam who enjoys duty free/ preferential duty access in EU’s market, Dr Sakthivel opined.
AEPC is extremely thankful to the Government of India for concluding this long-awaited deal, which has come as a respite for the Indian apparel industry in such turbulent times of global uncertainty. Dr. A. Sakthivel, Chairman, Apparel Export Promotion Council (AEPC) conveyed his sincere appreciation to the Hon’ble Prime Minister of India for his visionary leadership and to the Hon’ble Union Minister of Commerce and Industry for his tireless efforts in bringing the negotiations to a successful conclusion.
Credits: PR received from AEPC India official id. The content has not been edited and reviewed by us.
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