India is currently negotiating a free trade agreement (FTA) with European Union (EU27). Both sides have already conducted three rounds of talks to finalise a trade deal with concessions from both sides. An Indian government official had recently indicated that the negotiations with EU are on track and the trade deal is likely be finalised soon. Europe is the second largest market for India’s apparel exports.
India and EU could conduct three more rounds of talks. India has already signed an FTA with Australia and is currently negotiating an agreement with the UK.
India exported apparel worth $13.711 billion in the first ten months of 2022, out of which the shipments to Europe amounted to $4.789 billion or 35.51 per cent of the total. Europe is the second biggest market for Indian apparel after North America. India’s apparel exports to North America stood at $5.298 billion, which was 38.64 per cent of the total, according to Fibre2Fashion’s market insight tool TexPro.