EU-India FTA: Textile Opportunity Meets Sustainability Challenge
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Firstpost•31-01-2026, 15:43
EU-India FTA: Textile Opportunity Meets Sustainability Challenge
- •The EU-India FTA eliminates tariffs up to 10-12% on Indian textile exports, potentially doubling or quadrupling current exports of $7.2 billion to Europe.
- •Alongside tariff benefits, the EU's strict sustainability regulations, like the EUCSDDD, pose a new compliance challenge for Indian textile exporters.
- •The EUCSDDD requires companies to verify their entire supply chain is free from human rights abuses and environmental harm, shifting from a checklist to an operating model change.
- •Indian MSMEs face significant challenges in meeting these new due diligence norms due to lack of capabilities and need for substantial investment and operational changes.
- •Five key areas for support include practical capacity building, traceability and digital readiness for MSMEs, credible grievance handling, environmental upgrades, and decarbonization efforts.
Why It Matters: The EU-India FTA offers huge textile export potential, but sustainability compliance is crucial for success.
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