India-EU: The Indian government’s positive progress on the India-EU Free Trade Agreement (FTA), which is now in advanced stages, has been praised by Indian clothing producer CTA Apparels.

Negotiations have been “very positive,” according to Union Commerce and Industry Minister Piyush Goyal, and both parties seem ready to reach a mutually beneficial deal shortly.

Nearly 27% of India’s garment exports, which are worth over USD 7.5 billion a year, go to the European Union, making it the country’s second-largest export market.

Due to advantageous trade agreements, major rivals like Bangladesh, Vietnam, and Turkey are exempt from import levies on Indian clothing, which now vary from 8% to 12% in EU tariffs.

According to a statement from CTA Apparels, a well-designed India-EU free trade agreement may drastically reduce this competitive gap by lowering or doing away with tariffs, allowing Indian exporters to provide more value-added, price-competitive goods in Europe.

“This move is expected to boost India’s apparel exports by an estimated 20-25% over the next three years, according to industry trade projections,” said the statement.

Furthermore, the agreement’s emphasis on technical standards, market access, sustainability, and rules of origin will contribute to the development of a stable and predictable environment for long-term investments in the textile value chain.

The FTA offers a chance to expand international alliances and bolster India’s position in upscale European markets for conscientious and environmentally conscious producers.

“The India-EU FTA’s advancement is a positive step for India’s garment industry,” said Mukesh Kansal, Chairman of CTA Apparels. One of our most significant partners is the European Union, and a fair, progressive trade deal will open up new avenues for development, acceptance of new technologies, and the generation of long-term value. CTA Apparels is completely in line with India’s goal of strengthening international trade alliances based on innovation, quality, and transparency.

The most intense stage of the India-EU free trade agreement (FTA) talks, which was originally intended to be completed by the end of this year, began earlier this month when a 40-person European Union negotiation team visited New Delhi.

2022 saw the resumption of India-EU free trade negotiations.