The momentum around the India-European Union (EU) Free Trade Agreement (FTA) is being welcomed across sectors beyond textiles and apparel, with the chemicals and logistics industries viewing the deal as a catalyst for improved competitiveness, deeper market access and stronger integration into global value chains. Industry leaders believe the agreement has the potential to reset India’s trade engagement with Europe by lowering tariff barriers, strengthening supply-chain linkages and reinforcing the importance of compliance, sustainability and operational preparedness in one of the world’s most demanding markets.

In the polyester and man-made fibre segment, Madhu Sudhan Bhageria, chairman and managing director of Filatex India Limited, believes the FTA would create a more level playing field for Indian polyester filament yarns and fabrics in Europe. He noted that reduced trade barriers would improve competitiveness against suppliers from Bangladesh, Vietnam, Cambodia and Turkiye, while also boosting downstream demand for consistent-quality polyester yarns. “However, access to the EU market will increasingly depend on quality, consistency, sustainability, and traceability,” Bhageria added, calling the agreement both an export opportunity and a “quality filter” for the industry.

From a broader textile and apparel perspective, Saket Todi, executive director of Lux Industries Ltd, expressed that the FTA could fundamentally reshape India’s export prospects. He said, “Zero duty access to a large, high value European market removes a long-standing disadvantage for Indian exporters and places them on a more level footing with competing sourcing nations.” Todi added that the agreement could support India’s ambition of reaching $100 billion in textile and apparel exports by 2030, while strengthening MSMEs, employment and value-added manufacturing across clusters.

The chemicals sector also views the agreement as a transformative opportunity. Gopal Agrawal, CEO of Anupam Rasayan India Limited, described the FTA as a defining milestone for bilateral commerce. He said, “The elimination of tariffs on a significant majority of chemical products will meaningfully enhance competitiveness, improve market access, and deepen engagement across specialty and performance chemical segments.” Highlighting the EU’s strategic importance, Agrawal added that the agreement would help Indian chemical manufacturers integrate more deeply into global value chains while accelerating innovation and long-term partnerships.

From a logistics standpoint, Jitendra Srivastava, CEO of Triton Logistics & Maritime, observed that the agreement could enhance export competitiveness for Indian textile and apparel manufacturers but stressed that pricing benefits alone would not be sufficient. He said, “An India-EU trade deal has the potential to significantly improve export competitiveness for Indian textile and apparel manufacturers by easing tariff barriers and expanding market access. However, the opportunity goes beyond pricing benefits. EU markets demand high compliance standards, sustainability alignment, and reliable delivery timelines.” Srivastava added that the FTA would place greater emphasis on efficient ocean freight planning, predictable transit schedules and seamless port-to-port coordination to meet European expectations.

Across sectors, stakeholders agree that while the India-EU FTA opens new doors, real gains will depend on execution, ranging from logistics efficiency and compliance readiness to quality upgrades, sustainability alignment and long-term capacity building.

Fibre2Fashion News Desk (CG)