EU FTA Deal Set to Boost India’s Textile Sector, Expands Market Access to 27 Major Countries

India Strengthens Global Trade Footprint: India’s emergence on the global economic stage cannot be ignored. At the 16th India-EU Summit, the long-awaited Free Trade Agreement (FTA) between India and the European Union (EU) was formally concluded—decades in the making and a testament to Prime Minister Narendra Modi’s strong economic leadership.

The EU is the world’s second-largest economy, while India ranks fourth. Together, they account for nearly 25% of global GDP. Before 2014, India traded with only 19 countries; today, it has expanded to 56 countries. The India-EU FTA alone opens access to 27 major and strategic markets, highlighting results-driven governance.

Textile Exports on the Rise
The global textiles and apparel market today exceeds $1.1 trillion, reflecting rising demand and rapid market evolution. Global textile imports have surged from $366.8 billion in 2001 to nearly $800 billion in 2024. Against this backdrop, India has strengthened its position, with textile exports rising from $10 billion to $40 billion.

Domestically, India’s textile market has expanded from $138 billion in 2020 to $190 billion in 2025, fueled by growing consumer demand and rising purchasing power. Government policies and initiatives have modernized production systems, strengthened supply chains, and enhanced international competitiveness.

Expanding Market Access Through FTA
The India-EU trade deal is historic, granting India access to all EU markets, home to nearly 2 billion consumers and a combined market size of $24 trillion. Under the FTA, over 99% of India’s exports to the EU will receive preferential treatment. Additionally, tariffs of 10–12% on $33 billion worth of goods will be eliminated, making Indian exports more competitive.

Diversification and Global Strategy
Over the past two years, India has developed a market diversification strategy based on GDP, demand trends, population, and per capita income. By 2025, Indian textile exports grew in over 100 countries, strengthening India’s global presence. Key contributions came from readymade garments and expanded manufacturing capacity, with exports up 77% to Argentina, 45% to Paraguay, and 30% to Egypt.

Focus on Skill Development
In the last decade, over 20 million sewing machines have been added to India’s production network, boosting output, productivity, and employment. Government support continues under the 2026–27 Union Budget, emphasizing mega textile parks, integrated value chains, sustainable production initiatives, and Samarth 2.0 skill development programs.

Textile Export Facilitation Centers will also be established in major clusters, providing exporters with a single platform for market access, FTA guidance, regulatory support, and end-to-end assistance. With a goal of reaching $100 billion in exports by 2030, India’s textile strategy reflects rapid growth and a global vision. The India-EU FTA further strengthens this trajectory, aiming to increase bilateral trade from $179 billion to $350 billion by 2030.

India is no longer just a participant in global trade—it is shaping the direction of international commerce.