India-EU trade pact to help boost exports, promote mfg: Exporters

New Delhi: Import duty concessions under the India–EU free trade agreement (FTA) are expected to significantly boost India’s exports to the 27-nation bloc and strengthen domestic manufacturing, exporters said after the two sides concluded negotiations on Tuesday.

The EU is India’s largest goods trading partner, with bilateral trade at $136.53 billion in 2024-25.

The bloc accounts for about 17 per cent of India’s total exports, while India represents 9 per cent of EU exports. The pact is expected to come into force early next year.

Welcoming the deal, Aqeel Panaruna, Chairman of Florence Shoe Company, said the EU remains the biggest market for India’s footwear and leather sector, accounting for nearly 45 per cent of exports.

He said shipments to the EU could rise to $6 billion by 2030, supporting India’s emergence as a globally competitive manufacturing hub.

Deloitte India Partner Gulzar Didwania said tariff concessions in wines, spirits and automobiles should be viewed as reciprocal market access, with phased liberalisation helping formalise imports and attract investment, technology transfer and value addition.

Apparel Export Promotion Council Chairman A Sakthivel said zero-duty access to the EU would sharply improve India’s competitiveness, with apparel exports projected to grow 20–25 per cent annually after the FTA takes effect.

The agreement eliminates tariffs on all apparel lines, providing a level playing field against rivals such as Bangladesh and Vietnam.

FIEO President SC Ralhan said the pact would catalyse exports across textiles, engineering goods, gems and jewellery, and leather, urging exporters to prepare for higher standards and scale.