INDIA–EU FTA CTA APPARELS APPAREL EXPORTS EUROPEAN UNION TARIFF REDUCTION SUSTAINABLE MANUFACTURING TEXTILE INDUSTRY GLOBAL TRADE INDIAN APPAREL EXPORT GROWTH NATIONAL
NEW DELHI, INDIA
By IFAB MEDIA - NEWS BUREAU - December 15, 2025 | 319 2 minutes read
CTA Apparels applauds the encouraging progress reported by the Government of India on the India–EU Free Trade Agreement (FTA), with the blueprint now in its advanced stages. Union Commerce and Industry Minister Piyush Goyal confirmed that negotiations have been “very positive,” with both sides showing readiness to arrive at a mutually beneficial agreement soon.
The European Union is India’s second-largest export destination for apparel, accounting for nearly 27% of India’s garment exports, valued at over USD 7.5 billion annually. Currently, Indian apparel products face import duties ranging from 8% to 12% in the EU—tariffs that key competitors such as Bangladesh, Vietnam, and Turkey do not face due to preferential trade arrangements.
A well-structured India–EU FTA could significantly bridge this competitive gap by reducing or eliminating tariffs, thereby enabling Indian exporters to offer more price-competitive and value-added products in Europe. This move is expected to boost India’s apparel exports by an estimated 20–25% over the next three years, according to industry trade projections.Additionally, the agreement’s focus on rules of origin, market access, sustainability, and technical standards will help in creating a predictable and stable environment for long-term investments in the textile value chain. For responsible and sustainability-driven manufacturers like CTA Apparels—recognized for ethical practices, energy-efficient operations, and advanced production systems—the FTA presents an opportunity to scale global partnerships and strengthen India’s presence in premium European markets.