The free commerce settlement (FTA) between India and the European Union will put India on a degree enjoying area with many opponents in lots of labor-intensive sectors akin to textiles, attire, leather-based items, footwear, engineering merchandise and seafood, India’s chief FTA negotiator Darpan Jain defined on Wednesday (28 January 2026).
Additional, whereas emphasizing that the FTA as an entire will profit all states of India, Mr. Jain additionally highlighted a number of sectoral advantages for states akin to Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Odisha and West Bengal.
India and the EU on Tuesday (27 January 2026) signed a doc marking the tip of FTA negotiations, which each side known as the “mom of all agreements”.
Textile sector will profit
“Obligation-free entry from earlier tariffs of as much as 12 per cent on textiles, attire and clothes will present a degree enjoying area for exporters and improve India’s competitiveness throughout the EU in comparison with competing nations akin to Bangladesh, Vietnam and Turkey, which take pleasure in duty-free or preferential entry beneath EU commerce agreements,” Jain stated.
Underneath the settlement, tariffs on leather-based merchandise, footwear, textiles, attire, and clothes can be fully eradicated as soon as the FTA takes impact.
“Capability growth and improvement is predicted in main clusters of Tamil Nadu, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar and West Bengal,” Jain asserted.
Engineering beneficial properties the sting
Jain stated India’s success in securing “preferential entry” beneath the FTA and decreasing tariffs would give it a aggressive edge in opposition to opponents akin to China, the UK, the US, Vietnam and Turkiye within the engineering sector.
That is anticipated to assist states like Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh undertake superior expertise, broaden enterprise and strengthen MSME networks, he stated.
The electronics sector will profit as effectively, Jain defined.
“The FTA will scale back current tariffs by as much as 14% and open up 99.6% of India-EU electronics commerce, making a degree enjoying area with international opponents akin to China, the US, Taiwan and Vietnam,” he stated, including that it will profit areas in Bangalore, Pune, Noida, Chennai and Hyderabad.
Coastal nations have a bonus
Within the maritime sector, upon the entry into drive of the FTA, tariffs can be fully eradicated on 94.4% of marine exports to the EU, decreasing the present tariff price of as much as 26%. Moreover, tariffs on 1.9% of exports can be phased out.
“The FTA removes the tariff drawback in opposition to nations akin to Morocco, Ecuador and Vietnam, to which India’s maritime exports take pleasure in duty-free or preferential entry,” Jain stated.
States with robust coastal clusters akin to Tamil Nadu, Andhra Pradesh, Kerala, Gujarat, Odisha and West Bengal will profit from this, he added.
He additional stated that the FTA will enhance India’s competitiveness within the pharmaceutical and medical gadgets sector in opposition to opponents such because the US, China and Japan, and can profit medtech hubs in Telangana, Karnataka, Andhra Pradesh, Maharashtra and Gujarat.
issued – January 28, 2026 7:17pm IST
