India-EU FTA: 63% cotton basket could cap apparel export gains



Zero duty, but not yet

India and the EU concluded FTA negotiations on January **, ****. The Indian government says textiles and clothing will receive zero-duty access across all tariff lines, removing duties of up to ** pe r cent. The agreement is not operational, however. European Commission President Ursula von der Leyen said it should be signed by the end of ****, potentially allowing entry into force in ****.

That timing matters because the industry’s projected **** per cent annual export growth, enough to double shipments in three to four years, remains an expectation, not a post-FTA result. Preferences will also depend on final product-specific rules of origin, a crucial issue for manufacturers using imported synthetic fabrics and specialist inputs.

The **% cotton problem



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