5 months ago
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The escaped commercialized statement (FTA) betwixt India and the European Union puts India connected a level-playing tract with a fig of its competitors successful a fig of labour-intensive sectors specified arsenic textiles, apparel, leather goods, footwear, engineering goods, and marine products, India’s main negotiator connected the FTA Darpan Jain explained connected Wednesday (January 28, 2026).
In addition, portion emphasising that the wide FTA volition payment each States successful India, Mr. Jain besides highlighted respective sectoral benefits to States specified arsenic Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Odisha, and West Bengal.
India and the EU connected Tuesday (January 27, 2026) signed a papers marking the decision of negotiations connected an FTA that some sides person dubbed the ‘mother of each deals’.
Textiles assemblage to benefit
“Duty-free entree from an earlier work of up to 12% successful textiles, apparel and covering provides a level playing tract for exporters and boosts India’s competitiveness successful the EU vis-a-vis competitors specified arsenic Bangladesh, Vietnam, and Turkey, which bask duty-free oregon preferential entree nether EU commercialized agreements,” Mr. Jain said.
Under the deal, duties connected leather goods, footwear, textiles, apparel, and covering volition beryllium wholly removed arsenic soon arsenic the FTA comes into force.
“Key clusters successful Tamil Nadu, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and West Bengal are acceptable to spot capableness enlargement and development,” Mr. Jain asserted.
Engineering gains an edge
In the engineering sector, Mr. Jain said India would summation a competitory borderline implicit its competitors specified arsenic China, the United Kingdom, the U.S., Vietnam, and Turkiye arsenic India has managed to unafraid “preferential access” and reduced tariffs nether the FTA.
This, helium said, is expected to assistance States similar Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh to follow precocious technologies, standard up operations, and fortify MSME networks.
The electronics assemblage is acceptable to payment successful akin fashion, Mr. Jain explained.
“The FTA reduces existing tariffs of up to 14% and opens 99.6% of India-EU electronics trade, creating a level playing tract against planetary competitors similar China, US, Taiwan, and Vietnam,” helium said, adding that this stands to payment hubs successful Bengaluru, Pune, Noida, Chennai, and Hyderabad.
Coastal States get advantage
The marine assemblage volition spot 94.4% of marine exports to the EU spot duties wholly eliminated arsenic soon arsenic the FTA comes into force, down from a existent tariff complaint of up to 26%. Another 1.9% of exports volition spot tariffs being eliminated successful phases.
“The FTA removes the work disadvantage faced by Indian marine exports with respect to countries similar Morocco, Ecuador, and Vietnam, which bask duty-free oregon preferential access,” Mr. Jain said.
States that are acceptable to payment from this are the ones with beardown coastal clusters specified arsenic Tamil Nadu, Andhra Pradesh, Kerala, Gujarat, Odisha and West Bengal, helium added.
He further said that the FTA would amended India’s competitiveness successful the pharmaceuticals and aesculapian devices sectors against competitors specified arsenic the US, China, and Japan, to the payment of MedTech hubs successful Telangana, Karnataka, Andhra Pradesh, Maharashtra, and Gujarat.
