Reports that India and the European Union have reached the final stage of a long-pending Free Trade Agreement (FTA) have brought a wave of optimism among textile and apparel exporters in Tiruppur, who have recently faced challenges due to high US tariffs.
Tiruppur Exporters’ Association (TEA) President KM Subramanian said the India-EU FTA, expected to be signed at a Delhi summit on January 27, will be a “game-changer” for the sector.
European Commission President Ursula von der Leyen shared her excitement on social media, stating, “We are closing in on the EU-India FTA. See you soon in Delhi,” and called it “the mother of all trade deals.”
Tiruppur, India’s largest apparel export hub, currently accounts for USD 1.74 billion in apparel exports to the EU, making up nearly 23% of India’s total textile and apparel exports to the region. Subramanian highlighted that the cluster symbolizes India’s enterprise-driven growth, employment generation, and global manufacturing excellence.
“Persistent tariff barriers in the EU have long affected India’s competitiveness,” Subramanian said. “The FTA’s promise of zero-duty market access is critical for sustaining large-scale employment, strengthening MSME-based manufacturing clusters, and expanding India’s presence across all 27 EU member countries.”
The FTA, nearly two decades in the making, is seen as a key step toward India achieving the Rs 9 lakh crore textile and apparel export target by 2030 and advancing “India Vision 2047,” aimed at positioning India as a global leader in sustainable manufacturing and export excellence.
A. Sakthivel, Chairman of the Apparel Export Promotion Council (AEPC), noted, “The European Union is the world’s largest apparel market. The India-EU FTA is a once-in-a-generation opportunity for India’s garment sector, which currently exports over USD 4.5 billion worth of apparel to the EU. Indian exporters will finally get zero-duty access from the date the FTA comes into force, leveling the playing field against competitors like Bangladesh, Vietnam, and Turkey.”
Tiruppur exporters are now gearing up for a new era of growth, hoping the landmark agreement will unlock the full potential of India’s textile and apparel industry in Europe.
