New Delhi, January 27
States across India are set to benefit from the landmark India-European Union Free Trade Agreement, with exports estimated at Rs 6.4 lakh crore expected to gain access to 27 EU markets under a single trade framework, Commerce Minister Piyush Goyal said in a post on X.
Several, including Gujarat, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Rajasthan, Punjab, Telangana, Andhra Pradesh, West Bengal, Assam and Kerala, are expected to be among the key beneficiaries of the agreement, given their strong presence in manufacturing, agri-based industries and export-driven sectors.
The FTA is expected to enhance market access for Indian products across a wide range of sectors, including textiles and apparel, engineering goods, pharmaceuticals and medical devices, electronics, chemicals, plastics and rubber, marine products, leather and footwear, gems and jewellery, handicrafts, tea and spices, minerals and agri-products.
Rajasthan, Gujarat, Maharashtra, Kerala, Tamil Nadu, Karnataka, Telangana, Uttar Pradesh, Andhra Pradesh, Assam, and Punjab are expected to see increased opportunities in key sectors.
The agreement is expected to support export-oriented enterprises, including micro, small and medium enterprises (MSMEs), by expanding access to EU markets across multiple sectors and regions.
In particular, labour-intensive sectors are expected to get a big boost, helping India's exports leapfrog.
In textiles and apparel, the FTA ensures immediate zero duty on 100 per cent tariff lines and value, with direct access to the USD 263 Billion EU textile marketIt will level the playing field against global competitors and empower millions of Indian weavers.
For leather and footwear, tariffs have been slashed from 17 per cent to 0 per cent, helping tap the USD 100 billion EU leather and footwear segment. It will help revitalise clusters in Agra, Kanpur, Kolhapur, and Ranipet with design-led exports.
Gems and jewellery also got 100 per cent duty-free access, with shimmering opportunities in a USD 79 billion premium market. Hubs across Gujarat, Rajasthan, Maharashtra and West Bengal are expected to gain.
In engineering and manufacturing, India win direct entry into a USD 2 trillion industrial market; besides preferential access for Indian engineering goods. It is expected to fuel India's USD 300 billion export target by 2030. It will help MSMEs in Maharashtra, Karnataka, Andhra Pradesh, Gujarat, and Tamil Nadu, among others.
India and the EU successfully concluded negotiations of the landmark India-EU Free Trade Agreement (FTA) on Tuesday. The documents on the FTA conclusion were exchanged between EU Trade Commissioner Maros Sefcovic and Union Commerce Minister Piyush Goyal. This announcement marks a historic milestone in India-EU economic relations and trade engagement with key global partners.
According to the joint statement, this historic deal is a milestone in the India-EU Strategic Partnership that will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains, and support sustainable and inclusive growth.
The FTA comes after intense negotiations since the re-launch of negotiations in 2022.
The European Union is India's one of the largest trading partner, with bilateral trade in goods and services growing steadily over the years. In 2024-25, India's bilateral trade in goods with the EU stood at Rs 11.5 Lakh Crore (USD 136.54 billion) with exports worth Rs 6.4 Lakh Crore (USD 75.85 billion) and imports amounting to Rs 5.1 Lakh Crore (USD 60.68 billion). India-EU trade in services reached Rs 7.2 Lakh Crore (USD 83.10 billion) in 2024.
- ANI
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