The Free Trade Agreement between India and the European Union is set to enhance export prospects for Gujarat, especially in its southern region. This agreement will offer broad duty-free and preferential access to one of the world’s largest import markets, fostering export-led industrial growth in key sectors. Currently, India’s exports to the EU amount to about Rs 1.44 lakh crore (USD 16.6 billion).
Sectors like textiles, leather and footwear, tea and coffee, spices, toys, sports goods, gems and jewellery, marine products, processed foods, automobiles, steel, pharmaceuticals, and chemicals will benefit from this agreement. Gujarat’s exports to the EU in 2024-25 were significantly contributed to by these sectors, with textiles and apparel expected to witness a notable surge, making the EU the second-largest export destination in this category for India.
The textile and apparel industry in India will gain zero-duty access and tariff reductions up to 12 per cent in the EU market, which is valued at USD 263.5 billion. Surat, a key hub for man-made fiber and synthetic textiles, is anticipated to seize new opportunities in various textile segments. Additionally, the gems and jewellery sector, along with marine exports and the chemicals industry, are poised for growth with preferential access and tariff reductions under the FTA.
The India-EU FTA is in line with the Prime Minister’s vision for India’s development through expanded exports, increased investments, and enhanced industrial capacity. The upcoming Vibrant Gujarat Regional Conference in Surat is expected to facilitate connections between regional industries and the European market, fostering sustained export growth.
