COIMBATORE: Against the backdrop of unprecedented global trade disruptions and the imposition of high tariffs by the United States, the Tirupur textile sector expects the Free Trade Agreement (FTA) between India and the European Union (EU) to enhance competitiveness, deepen supply chain resilience, and enable both India and the EU to strengthen their economies.
The India-EU FTA would provide a significant boost to the Indian textile and clothing industry, with the ready-made garments, home textiles, technical textiles and fabrics segments emerging as major beneficiaries.
“Tamil Nadu, which accounts for 29 per cent of the Indian textile exports to the EU to the tune of 2.3 billion US$, would be a major beneficiary of the pact. It would create a significant opportunity to double exports from major textile clusters such as Tirupur and Karur, which predominantly supply knitted garments and kitchen linen to several leading global brands in the EU,” said Durai Palanisamy, chairman, The Southern India Mills Association (SIMA).
While enabling India to effectively compete with key supplier countries such as Bangladesh, Turkey and Vietnam, which currently command shares of 21 per cent, 10 per cent and five per cent respectively, Durai added that the agreement would also strengthen India’s ability to compete with China, which remains the largest supplier to the EU with a share of 29 per cent.
“The FTA is expected to be a game changer and drive India’s textile industry to achieve the vision of increasing the textile business size from US$172 billion to US$250 billion and exports from 37 billion US$ to 100 billion US$ by 2030, increase new investment to the tune of 100 billion USD and create new jobs for 20 million people especially the rural masses and women folks. India’s annual export of textiles and clothing to the EU is valued at around USD eight billion, accounting for nearly six per cent of the EU’s total textile and apparel imports,” he said.
Terming the agreement as a milestone for trade between India and the EU, KM Subramanian, president of Tirupur Exporters Association, said Tirupur alone contributes around 1.74 billion US$ to India’s total knitted garment exports to EU countries.
In 2024-25, the total exports from Tirupur reached Rs 45,000 crore, with the EU being the largest market, next only to the United States. The labour-intensive knitwear sector in Tirupur employs around one million people, both directly and indirectly, with 70 per cent of them being womenKM Subramanian
A Sakthivel, president of the Apparel Export Promotion Council (AEPC), said the FTA presents a tremendous opportunity for the ready-made garment sector.
“Compared to other competing countries, the Indian exporters face significant tariff challenges. As the EU is one of the world's largest apparel markets, the FTA presents a tremendous opportunity for India’s ready-made garment sector,” he said.