India-EU FTA nears completion: CTA Apparels calls it game-changer for apparel industry

Indian garment manufacturer CTA Apparels has applauded the Government of India's encouraging progress on the India-EU Free Trade Agreement (FTA), with the blueprint now in advanced stages.

Union Commerce and Industry Minister Piyush Goyal confirmed that negotiations have been "very positive," with both sides showing readiness to arrive at a mutually beneficial agreement soon.

The European Union is India's second-largest apparel export destination, accounting for nearly 27 per cent of India's garment exports, valued at over USD 7.5 billion annually.

Currently, Indian apparel products face import duties ranging from 8 per cent to 12 per cent in the EU--tariffs that key competitors such as Bangladesh, Vietnam, and Turkey do not face due to preferential trade arrangements.
"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," the statement added.

Additionally, the agreement's focus on rules of origin, market access, sustainability, and technical standards will help in creating a predictable and stable environment for long-term investments in the textile value chain.
Please visit our youtube channel https://www.youtube.com/@ikargos2719 for fortnightly logistics news analysis and more!