New Delhi, Feb 7 || The India-EU Free Trade Agreement (FTA) eliminates duties and places Indian shipments on a level-playing field with key competitors such as Bangladesh and Vietnam, among other preferential trade partners, according to a new report.
The agreement is expected to bring down EU import duties on Indian textiles to zero, addressing a longstanding tariff disadvantage that had limited India’s competitiveness in the region.
The ICRA report notes that preferential access and lower tariffs previously enabled competing countries to maintain a stronger foothold in the EU market, while Indian exporters faced structural pricing constraints.
The EU’s import dependence on India has historically remained below 5 per cent, with China, Bangladesh, Turkey and Vietnam leading supplies to the region.
Preferential trade access and lower tariffs had placed Indian exporters at a structural disadvantage prior to the agreement.