New Delhi: States across India are poised to gain significantly from the landmark India-European Union Free Trade Agreement (FTA), with exports valued at nearly Rs 6.4 lakh crore set to enter 27 EU nations under a unified trade framework, Union Commerce Minister Piyush Goyal said.
In a post on X, Goyal highlighted that several states including Gujarat, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Rajasthan, Punjab, Telangana, Andhra Pradesh, West Bengal, Assam and Kerala are expected to emerge as major beneficiaries, given their strong base in manufacturing, agriculture-linked industries and export-oriented sectors.
The agreement is aimed at widening market access for Indian goods across diverse segments such as textiles and apparel, engineering products, pharmaceuticals and medical devices, electronics, chemicals, plastics, rubber, marine exports, leather and footwear, gems and jewellery, handicrafts, tea, spices, minerals and agricultural produce.
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States like Rajasthan, Gujarat, Maharashtra, Kerala, Tamil Nadu, Karnataka, Telangana, Uttar Pradesh, Andhra Pradesh, Assam and Punjab are expected to see fresh opportunities across key sectors as exports scale up.
The FTA is also expected to provide a major boost to export-focused enterprises, especially micro, small and medium enterprises (MSMEs), by opening doors to EU markets across regions and industries. Labour-intensive sectors, in particular, are likely to benefit, helping push India’s export growth to the next level.
In the textiles and apparel sector, the agreement provides immediate zero-duty access on 100 per cent of tariff lines, enabling Indian exporters to tap directly into the USD 263 billion EU textile market. This is expected to level the playing field against global competitors and benefit millions of Indian weavers.
For leather and footwear, duties have been reduced from 17 per cent to zero, opening access to the USD 100 billion European market. This move is expected to revive key manufacturing clusters in Agra, Kanpur, Kolhapur and Ranipet, with a renewed focus on design-driven exports.
The gems and jewellery sector has also secured complete duty-free access, unlocking opportunities in a premium USD 79 billion market. Export hubs across Gujarat, Rajasthan, Maharashtra and West Bengal are set to gain from the agreement.
In engineering and manufacturing, Indian exporters will gain direct entry into a USD 2 trillion industrial market, along with preferential access for engineering goods. This is expected to support India’s ambition of reaching USD 300 billion in engineering exports by 2030, particularly benefiting MSMEs in states such as Maharashtra, Karnataka, Andhra Pradesh, Gujarat and Tamil Nadu.
India and the European Union formally concluded negotiations on the FTA on Tuesday, with documents exchanged between EU Trade Commissioner Maros Sefcovic and Commerce Minister Piyush Goyal. The development marks a significant milestone in India-EU economic relations.
According to a joint statement, the agreement represents a key step forward in the India-EU Strategic Partnership and is expected to strengthen trade and investment ties, build resilient and diversified supply chains, and promote sustainable and inclusive growth.
Negotiations for the FTA resumed in 2022 after an earlier pause and were concluded following sustained discussions. The European Union remains one of India’s largest trading partners. In 2024-25, bilateral trade in goods stood at Rs 11.5 lakh crore, with Indian exports worth Rs 6.4 lakh crore and imports at Rs 5.1 lakh crore. Trade in services between India and the EU reached Rs 7.2 lakh crore during the same period.
(With inputs from ANI)
