Media reports, citing European Council President Antonio Costa, indicated that Prime Minister Narendra Modi is likely to visit Brussels in December to sign the India-EU Free Trade Agreement (FTA) formally. Earlier, Dutch Minister for Foreign Trade and Development Cooperation Sjoerd Sjoerdsma had also suggested that the agreement could be signed in December 2026, with implementation expected by spring 2027.
For apparel exporters, the stakes are substantial, as the FTA could reduce the tariff disadvantage they face against regional rivals.
Indian apparel exporters are positioning for a tariff advantage in Europe as the India-EU FTA moves towards possible signing in December 2026, with implementation expected by spring 2027.
Gokaldas Exports sees Europe’s export share rising to 25–30 per cent in three to five years, while Raymond Lifestyle targets 20–25 per cent.
EU sustainability and traceability rules will shape lasting gains.
The prospect of improved market access seems to be already influencing corporate strategies. According to recent media reports, Gokaldas Exports is reportedly holding discussions with major European retailers in anticipation of improved market access. The company reportedly expects Europe’s share of its exports to rise from around 15 per cent currently to 25–30 per cent over the next three to five years.
Separately, the company plans to invest ₹1.25 billion (~$13.1 million) in fiscal 2027 to expand its overall production capacity and upgrade facilities. Its growing focus on Europe also reflects a broader effort to diversify beyond the US amid persistent trade-policy uncertainty.
For Raymond Lifestyle, Europe seems to be emerging as a bigger growth opportunity as well. According to earlier media reports, the company plans to raise Europe’s share of its exports from around 17 per cent currently to 20–25 per cent over the next two years.
Several other exporters are also reportedly intensifying their focus on Europe to expand their presence and consolidate market position.
The interest is not confined to the exporters alone. Earlier media reports had indicated that European buyers were stepping up factory evaluations and developing supplier relationships in India in anticipation of improved market access under the agreement.
However, tariff relief alone may not guarantee lasting gains. European buyers are operating in a regulatory environment that increasingly emphasises sustainability, traceability, and circularity. Under the EU’s Ecodesign for Sustainable Products Regulation, textiles and apparel are a priority category for future Ecodesign requirements and Digital Product Passports.
In the long run, Indian exporters will need to combine competitive pricing and production scale with reliable supply chains and credible sustainability credentials to meet European buyers’ expectations and build lasting retail partnerships.
The FTA could help level the playing field, but exporters will still need to deliver on these fundamentals to secure sustained gains
Fibre2Fashion News Desk (DR)
