TIRUPPUR: Reports that India and the European Union have reached the final stage of a long-due Free Trade Agreement (FTA) have excited textile and apparel exporters based in Tiruppur who have been of late upset over the challenges posed by the high US tariffs.
Tiruppur Exporters' Association (TEA) President KM Subramanian told TNIE that exporters here firmly believe that the India-EU FTA will be a game-changer for the textile and apparel sector.
Subramanian said this will be signed at a summit to be held in Delhi on January 27.
European Commission President Ursula von der Leyen in her social media post on Saturday, said, "We are closing in on the EU-India FTA. See you soon in Delhi. Further she dubbed it, 'the mother of all trade deals".
Tiruppur-based exporters are upbeat as the place is a leading apparel exports cluster in the country.
The TEA President, further, said, "Tiruppur, the country's largest exporting hub for apparel and ready-made garments, stands as a symbol of India's enterprise-led growth, employment generation, and global manufacturing excellence. The Tiruppur cluster currently accounts for apparel exports of approximately USD 1.74 billion to the European Union, contributing nearly 22.9% of India's total textile and apparel exports to the EU. This remarkable performance underscores Tiruppur's strategic importance to India's export economy."
"However, persistent tariff barriers in the European Union continue to impact India's competitiveness compared to competing countries. Recognising this challenge, the TEA has consistently advocated for comprehensive zero-duty market access under the India-EU Free Trade Agreement," he added.
Speaking on the likely gains from the FTA, which has been nearly two decades in the making, Subramanian said, "The India-EU FTA will be vital for sustaining large-scale employment, strengthening MSME-based manufacturing clusters, and significantly expanding India's footprint in the European Union market across all 27 EU member countries.
"TEA firmly believes that the India-EU FTA will play a pivotal role in achieving the national target of Rs 9 lakh crore in textile and apparel exports by 2030, while laying a strong foundation for 'India Vision 2047,' positioning India as a global leader in sustainable manufacturing, inclusive growth and export excellence."
A Sakthivel, Chairman of Apparel Export Promotion Council (AEPC), said, "European Union is the world's largest apparel market, and the India-EU FTA represents a once-in-a-generation opportunity for India's garment sector, which currently exports over USD 4.5 billion worth of apparel to the EU. Indian apparel exporters have been facing significant tariff disadvantages compared to competing countries such as Bangladesh, Vietnam, and Turkey. India will secure zero-duty market access for apparel products from the date the FTA comes into force."