Editor’s Note
This landmark trade deal promises to boost key Indian industries by removing tariff barriers to the EU market, offering a competitive edge for labor-intensive exports.
The Free Trade Agreement (FTA) between India and the European Union (EU), concluded on Tuesday, has provided significant relief to the country’s more labor-intensive sectors. Under this agreement, sectors such as leather and footwear, textiles, gems and jewelry will now be able to export to the 27 countries of Europe with zero duty.
Under the FTA, zero duty will now be applied to textile and apparel exports from India to Europe. This will give Indian exporters direct access to the EU’s $263 billion textile market. This will not only increase exports but also empower Indian weavers and artisans.
According to the Union Minister, following this agreement, the duty on leather and footwear products, which was previously around 17%, has now been completely eliminated. This will give Indian exporters zero-duty access to Europe’s approximately $100 billion leather and footwear market.
The India-EU FTA is also expected to bring significant benefits to the gem and jewelry industry. This will open up new opportunities for Indian exporters in Europe’s $79 billion premium gems and jewelry market.
Through this FTA, Indian exporters will get priority-based direct entry into Europe’s nearly $2 trillion industrial market. This is expected to strengthen cooperation between the manufacturing and service sectors.
Announcing the India-EU FTA, Prime Minister Narendra Modi said that this agreement is not just a trade deal, but a new blueprint for shared prosperity.