Duty-free access to EU could unlock $263 billion market for Indian textiles: Commerce Ministry

India’s textiles exports to the European Union will get a major boost as it will get duty-free access in the 27-nation bloc, the commerce ministry said on Tuesday.

At present, the import duty in the EU on Indian textiles ranges between 0 and 12%.

“Gaining zero duty access in textiles and clothing, covering all tariff lines and reducing tariffs by up to 12%, would open up the EU’s ₹22.9 lakh crore ($263.5 billion) import market,” the ministry said.

The sector, which is the second largest employer after agri, will also compete with Bangladesh, which enjoys zero duty in the EU market.

“Building on India’s current ₹3.19 lakh crore ($36.7 billion) textile and apparel exports, including $7.2 billion to the EU, such access would significantly expand opportunities, particularly in yarn, cotton yarn, cotton yarn, man-made fibre apparel, ready-made garments, men’s and women’s clothing and home textiles,” the ministry said.

This would enable MSMEs to scale, generate employment, and reinforce India’s positioning as a reliable, sustainable, and high-value sourcing partner, it added.

Also Read: India-EU FTA redraws India's trade map, unlocking Europe while ring-fencing sensitive sectors

Commenting on the FTA, Apparel Export Promotion Council (AEPC) said industry projections estimate that Indian apparel exports could grow by 20–25% year on year after operationalisation of the FTA as against the current growth rate of 3.01% in the EU market.

AEPC Chairman A Sakthivel said the FTA would eliminate tariffs on 100% of apparel tariff lines which will enhance market access to all member countries of the EU.

The EU is the world’s largest apparel importer with total apparel import worth $202.8 billion in 2024-25.

Some of the major garment importing countries of the EU like Germany, France, Spain and Italy source substantially from India and this deal will further boost the country’s apparel exports to these economies, he added.