India-EU FTA: Sports goods, toy sectors seek duty-free access to the EU

NEW DELHI: The proposed India–EU FTA is likely to provide a major boost to Indian industry by opening new avenues for exports, investment and long-term sectoral growth. Industry representatives said the reduction and eventual removal of import duties under the pact would significantly enhance the price competitiveness of Indian products in the EU. The FTA is also likely to encourage a shift towards value-added and design-driven exports, helping Indian industry move up the global value chain. With growing demand in Europe for ethically sourced, eco-friendly and safe products, Indian manufacturers are well positioned to strengthen their brand presence, in line with initiatives such as “Make in India” and “Atmanirbhar Bharat”.

The EU remains one of the largest and most demanding markets for Indian sports goods and toys, which require strict compliance with quality and sustainability standards. Exports of sports goods and toys to the EU were estimated at about $155 million in FY25 and are rising steadily. Manufacturing in the sports goods sector is expanding, supported by fresh investments and capacity additions. Preparations linked to India’s plans to host the Commonwealth Games in 2030 and its Olympic ambitions have further encouraged manufacturers to scale up production. The government has set up a NITI Aayog-led task force to promote growth in sports goods manufacturing in coordination with central & state agencies. The toy sector has also witnessed rapid expansion, with imports declining by nearly 70% and exports rising sharply over the past seven years, aided by supportive government policies and new manufacturing clusters. With capacities in place, the Sports Goods & Toys Export Promotion Council has urged the Department of Commerce to include both sectors in the India–EU FTA talks & seek duty-free access, which would help MSMEs compete globally, generate jobs and strengthen India’s export base.