INDIA’S textile and apparel sector is poised for a significant boost following the conclusion of a Free Trade Agreement (FTA) between India and the European Union, which will eliminate import duties on Indian textile exports to the bloc, according to a Jefferies equity research report.
The agreement is expected to provide a major boost to India’s textile and apparel sector, which currently faces tariffs of up to 12% in the EU, compared with zero duties for competitors such as Pakistan, Bangladesh and Turkiye. Similar benefits are expected for exports of chemicals, leather products and footwear. EU imports nearly US$125 billion worth of textiles and apparel annually, making it one of the world’s largest markets for clothing and fabric.
Jefferies analysts note that India has secured preferential access across 97 per cent of EU tariff lines, covering nearly 99.5 per cent of trade value. As a result, around 91 per cent of Indian exports to the EU will face no import duties from the effective date of the agreement.
ANI
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