Hailing the pact, Aqeel Panaruna, Chairman, Florence Shoe Company and Director, Grand Atlantia Panapakkam SEZ PvT Ltd, said the European Union remains the largest market for India’s footwear and leather industry, accounting for 44.64 per cent of exports in 2024.
“With exports to the EU at USD 2.25 billion and the total sector exports at USD 5.04 billion, the agreement has the potential to significantly accelerate growth,” Aqeel said.
He added that the shipments to the EU are projected to reach USD 6 billion by 2030, while overall exports could touch USD 14 billion, strengthening India’s position as a globally competitive manufacturing partner.
Gulzar Didwania, Partner, Deloitte India, said tariff concessions in wines, spirits and automobiles under the trade deal are best seen as a bid for reciprocal market access.
“In alcohol, carefully phased liberalisation can help formalise imports. In automobiles, selective opening, particularly for components and EVs, can be leveraged to attract investment, embed technology transfer and strengthen domestic manufacturing ecosystems,” he said.
Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said this deal will provide a significant boost to apparel exports, which are expected to double over the next three years.
“The zero-duty access of Indian garments and clothing to the EU market will decisively turn the tables in India’s favour, enhancing our competitiveness in the European market,” Sakthivel said.
He added that industry projections estimate that Indian apparel exports could grow by 20–25 percent year-on-year after the operationalisation of the FTA, against the current growth rate of 3.01 percent in the EU market. (PTI)