ARTICLE AD BOX
Ahmedabad: The Indian textile industry has welcomed the Free Trade Agreement (FTA) between India and the European Union (EU) stating that the textile sector, especially the man-made fabric (MMF) sector will get a major boost amid the growing global uncertainty.
Ronak Chiripal, Director of the Chiripal Group said the agreement brings renewed optimism at a time when tariffs are rising worldwide and trade conditions are becoming increasingly unpredictable. He pointed out that trade between India and the EU had already crossed €120 billion in 2024, making the EU India’s largest trading partner.
“For years, Indian exporters have faced higher tariffs and limited access to EU markets compared to other regions,” Chiripal said. “This FTA changes that equation. It opens the door for India to integrate more deeply into a vast market of nearly two billion consumers.”
Highlighting the importance of the deal for the textile industry, Chiripal said sectors such as textiles stand to benefit significantly from lower duties and assured market access. He added that aligning with European sustainability standards would not only make Indian products more price-competitive but also encourage higher value-added manufacturing within the country.
“The textile sector will gain from duty rationalisation, especially in cotton garments, home textiles and made-ups,” he noted. “This agreement will also push investments into processing, finishing and man-made fibre segments—areas where India has traditionally lagged.”
Chiripal also said the timing of the agreement is crucial, as many European buyers are actively looking to diversify their supply chains away from China. “India is well-placed to fill that gap, particularly as lower tariffs and stable trade terms improve our competitiveness,” he said.
Beyond immediate trade benefits, Chiripal stressed that adherence to European standards on traceability, environmental compliance and labour practices would encourage Indian exporters to move towards branded, sustainable and higher-value exports rather than relying purely on volumes.
Referring to the tariff hikes imposed by the US on Indian goods last year, Chiripal said the FTA with the EU would help India reduce its dependence on a single market. “Stronger ties with Europe offer long-term stability and complement India’s recent trade agreements with the UK and the European Free Trade Association,” he said.
English (US) ·