SIMA Hails India–EU FTA as landmark boost for textile industry

The Southern India Mills’ Association has hailed the historic Free Trade Agreement concluded between India and the European Union as a landmark development that will provide a major boost to the Indian textile and clothing industry and strengthen the country’s global trade competitiveness.
Welcoming the pact, SIMA Chairman Durai Palanisamy lauded Prime Minister Narendra Modi for his visionary leadership and Union Minister for Commerce and Industry Piyush Goyal for their sustained efforts in successfully concluding the long-pending agreement. He said the India–EU FTA, negotiations for which began in 2007, had remained stalled for several years but was brought to fruition through focused and decisive leadership.
Mr. Palanisamy said the timing of the agreement, coinciding with the 77th Republic Day of the nation, had added symbolic significance and renewed momentum to India–EU economic relations.
He noted that the pact assumes greater importance amid unprecedented global trade disruptions and abnormal tariff structures imposed by certain majo economies. According to SIMA, the agreement would significantly benefit the Indian textile and clothing sector, particularly ready-made garments, home textiles, technical textiles and fabrics. India currently exports textiles and clothing worth around USD 8 billion annually to the European Union, accounting for nearly six per cent of the EU’s total imports in the sector.
The FTA would enable India to compete more effectively with major supplier nations such as Bangladesh, Turkey, Vietnam and China. The SIMA Chairman pointed out that Tamil Nadu would be one of the biggest beneficiaries of the agreement, as the State accounts for about 29 per cent of India’s textile exports to the EU, valued at approximately USD 2.3 billion. Major textile clusters such as Tiruppur and Karur are expected to witness a surge in exports to leading global brands in Europe.
He further said the pact would facilitate access to advanced technology, promote value addition, product development and innovation, and improve global competitiveness. Mr. Palanisamy appealed to the Centre to ensure the speedy implementation of the India–EU and India–UK FTAs, stating that timely operationalisation would help revive the industry, improve capacity utilisation and generate employment for millions across the textile value chain.