Ronak Chiripal, about the historic India-EU trade deal which was signed today

Ahmedabad, 29th January: At a time when global trade is being reshaped by higher tariffs and geopolitical uncertainty, the Free Trade Agreement (FTA) between India and the European Union, comes as a ray of hope for Indian exporters. The bilateral goods trade between India and the EU has already surpassed €120 billion in 2024, making the EU as India’s largest trading partner. By far, Indian exporters have historically faced tariff and market-access disadvantages in the EU as compared to other markets. The FTA addresses this imbalance and opens up a unified market of nearly 2 billion customers for India.

For sectors like textiles, the agreement is particularly significant. Lower duties, predictable access and alignment with European sustainability standards will improve price competitiveness and encourage value-added manufacturing in India

The agreement could also help rebalance sourcing in favour of India as European buyers look beyond China and tariff-advantaged competitors. Duty rationalisation will further improve India’s competitiveness across cotton garments, home textiles and made-ups, while encouraging investments in man-made fibre, processing and finishing – areas where India has traditionally lagged thus far. Importantly, alignment with European norms on traceability, environmental compliance and labour standards will push the industry towards higher-value, branded and sustainable exports rather than volume-led growth alone.

At a time when India is actively diversifying its exports beyond the US following steep tariff actions over the last year, a deeper integration with the EU provides long-term stability and growth visibility. The deal will certainly complement India’s recent trade agreements with the UK and European Free Trade Association (EFTA), strengthening the country’s positioning as a reliable global manufacturing and export hub.

(Disclaimer: The information provided here is investment advice only. Investing in the markets is subject to risks and please consult your advisor before investing.)

(સ્પષ્ટતા: અત્રેથી આપવામાં આવતી તમામ પ્રકારની માહિતી કોઇપણ પ્રકારે રોકાણ/ ટ્રેડીંગ માટેની સલાહ નથી. બજારોમાં રોકાણ જોખમોને આધીન છે અને રોકાણ કરતા પહેલા કૃપા કરીને તમારા સલાહકારની સલાહ લો.)