Ministry of Textiles has said that the India-EU Free Trade Agreement is a transformational trade deal for the country’s textile and apparel sector. The Ministry said the European Union is India’s second-largest export destination for textiles and apparel. It said that the country’s textile exports to the EU have shown positive growth in the last 5 years, and are diversified across multiple value-added and labour-intensive segments. Ready-Made Garments form the largest component of exports to the EU, followed by Cotton textiles, Man-made fibre, Handicrafts, and Carpets.

This emphasises the labour-intensive sectors of textiles, apparel and handicrafts, the artisanal and MSME-driven character of India’s textile trade with the European market. It will also give a decisive boost to labour-intensive industries, enhancing price competitiveness and expanding market access in one of the world’s most sophisticated consumer markets.

The agreement will also support growth in high-value, design-oriented segments and strengthen India’s role in global furniture supply chains. It also provides comprehensive measures to address non-tariff barriers through strengthened regulatory cooperation, customs facilitation, transparency and predictable trade rules.