India Textile Exports Get EU Boost as FTA Brings Zero Tariffs

Indian textile and apparel exports are set to gain in Europe after the India–EU FTA eliminates import duties, giving India tariff parity with Bangladesh and Vietnam.

EU import dependence on India has historically remained below 5%, while China, Bangladesh, Turkey and Vietnam dominated supplies due to preferential access and lower tariffs.

India’s apparel exports were valued at over USD 16 billion in CY2025, with ~23% shipped to the EU and nearly one-third to the US, though EU shipments stayed largely flat in recent years.

The agreement is expected to strongly benefit apparel and home textiles, enabling zero-duty access and improved competitiveness in the European market.

Overall, the FTA grants zero-tariff access on 97% of EU tariff lines, covering 99.5% of India’s export value, supporting MSMEs and expanding India’s EU market share.