Gandhinagar: The Free Trade Agreement (FTA) concluded between India and the European Union is expected to significantly expand export opportunities for Gujarat, particularly its southern region, by providing wide-ranging duty-free and preferential access to one of the world’s largest import markets.
The agreement marks a major step in India’s efforts to deepen its global trade engagement while strengthening export-led industrial growth across key sectors.
India’s exports to the European Union currently stand at about Rs 1.44 lakh crore (USD 16.6 billion).
Under the FTA, India has secured preferential access across 97 per cent of tariff lines, covering 99.5 per cent of the total trade value. Immediate duty elimination will apply to 70.4 per cent of tariff lines, accounting for 90.7 per cent of India’s exports to the EU.
Sectors such as textiles, leather and footwear, tea and coffee, spices, toys, sports goods, gems and jewellery, marine products, processed foods, automobiles, steel, pharmaceuticals and chemicals are among the key beneficiaries.
During 2024-25, these sectors together contributed nearly one-fourth of Gujarat’s total exports to the EU. Textiles and apparel are expected to see a sharp boost, with the EU remaining India’s second-largest export destination in this segment.
Zero-duty access and tariff reductions of up to 12 per cent will open the EU’s USD 263.5 billion textile and apparel import market further to Indian exporters. India’s textile and apparel exports currently total USD 36.7 billion globally, with USD 7.2 billion directed to the EU. Ready-made garments form the bulk of these exports, followed by cotton textiles and man-made fibre products.
Surat, a major centre for man-made fibre and synthetic textiles, is expected to benefit significantly from new opportunities in yarn, apparel, home textiles and garments.
The gems and jewellery sector is also poised for growth, with preferential access to the EU’s USD 79.2 billion import market.
Surat, one of the world’s leading diamond processing hubs with more than 5,000 units, already supports a strong export ecosystem. Over 250 jewellery and diamond-related units operating in the Surat SEZ further strengthen the sector’s capacity for high-value exports.
Marine exports, currently valued at USD 1 billion to the EU, are set to gain from tariff reductions of up to 26 per cent, opening access to the EU’s USD 53.6 billion seafood import market. This is expected to support increased value-added seafood exports from Gujarat.
The chemicals sector is another major beneficiary, with zero duty to apply on 97.5 per cent of the value of chemical exports under the FTA.
This removes tariffs of up to 12.8 per cent and enhances competitiveness across inorganic, organic and agrochemical products. The Surat economic region contributes nearly 70 per cent of Gujarat’s chemical gross value added, positioning South Gujarat as a key driver of future growth.
Officials have stated that the India–EU FTA aligns with the Prime Minister’s vision of a developed India by expanding exports, attracting investment and strengthening industrial capacity.
The Vibrant Gujarat Regional Conference (VGRC) for South Gujarat, scheduled in Surat in April this year, is expected to serve as a platform to connect regional industries with emerging opportunities in the European market and support sustained export growth.
(IANS)
