A recent trade agreement has sparked excitement within India’s footwear and apparel industries. Aqeel Panaruna, Chairman of Florence Shoe Company, highlights that the European Union is crucial for India’s leather exports, accounting for 44.64% of the total in 2024. Exports to the EU reached USD 2.25 billion, contributing to a total of USD 5.04 billion across the sector. Experts predict shipments to the EU could soar to USD 6 billion by 2030, pushing overall exports to USD 14 billion. This growth could significantly bolster India’s status as a key player in global manufacturing.
Gulzar Didwania, a Partner at Deloitte India, points out the benefits of tariff reductions in sectors like wines, spirits, and automobiles. He suggests that these concessions could help formalize imports and attract investments in electric vehicles (EVs). Phased liberalization can help enhance technology transfer and strengthen India’s manufacturing base.
A. Sakthivel, Chairman of the Apparel Export Promotion Council, also sees a bright future for apparel exports, suggesting they could double in the next three years. He emphasizes that zero-duty access to the EU market will greatly enhance India’s competitiveness. Following the agreement, Indian apparel exports are expected to grow between 20 to 25% per year, a significant increase from the current growth rate of just 3.01% in the EU market.
In contrast, past trade agreements often led to uneven growth, leaving certain sectors lagging behind. The current deal appears to address these disparities, offering a more balanced approach that could benefit both sides.
This trade agreement reflects a growing trend toward economic globalization, where nations seek mutual benefits. As exports increase, India stands to strengthen its global position, paving the way for new opportunities across multiple industries.
For a closer look at trade deals and their impacts, you can check out reports from sources like the World Trade Organization or Deloitte.
