Tariffs fall; the product gap stays
India and the EU concluded FTA negotiations on January **, ****. India says textiles and clothing will receive zero-duty treatment across tariff lines, while the European Commission says most textile and apparel tariffs will disappear when the agreement enters into force.
That access is not operational yet. Legal review, signature and approval are still required, with implementation expected no earlier than ****. Forecasts that apparel exports could grow **–** per cent annually and double within three to four years therefore remain projections.
The FTA solves India’s tariff disadvantage against suppliers such as Bangladesh, Türkiye and Vietnam. It does not ensure that European buyers will shift orders if India lacks competitive programmes in their largest categories.
