India-EU FTA nears completion: CTA Apparels calls it game-changer for apparel industry
Dec 13, 2025
New Delhi [India], December 13 : Indian garment manufacturer CTA Apparels has applauded the Government of India's encouraging progress on the India-EU Free Trade Agreement (FTA), with the blueprint now in 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 apparel export destination, accounting for nearly 27 per cent of India's garment exports, valued at over USD 7.5 billion annually.
Currently, Indian apparel products face import duties ranging from 8 per cent to 12 per cent 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 narrow this competitive gap by reducing or eliminating tariffs, thereby enabling Indian exporters to offer more price-competitive, value-added products in Europe, CTA Apparels said in a statement.
"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," the statement added.
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, the FTA presents an opportunity to scale global partnerships and strengthen India's presence in premium European markets.
Mukesh Kansal, Chairman, CTA Apparels, said, "The progress on the India-EU FTA is a welcome development for India's apparel sector. The European Union is one of our most important partners, and a fair, forward-looking trade agreement will unlock new opportunities for growth, technology adoption, and sustainable value creation. CTA Apparels stands fully aligned with India's vision of strengthening global trade partnerships rooted in quality, transparency, and innovation."
A 40-member European Union negotiating team was in New Delhi earlier this month, marking the most intensive phase of the India-EU free trade agreement (FTA) discussions, aimed initially at concluding it by the end of this year.
India-EU FTA talks were relaunched in 2022.
