EU FTA puts India on a level playing field against competitors in labour-intensive sectors: chief negotiator
The Hindu
The EU-India FTA levels the playing field for India in labor-intensive sectors, benefiting various States and enhancing competitiveness.
The free trade agreement (FTA) between India and the European Union puts India on a level-playing field with a number of its competitors in a number of labour-intensive sectors such as textiles, apparel, leather goods, footwear, engineering goods, and marine products, India’s chief negotiator on the FTA Darpan Jain explained on Wednesday (January 28, 2026).
In addition, while emphasising that the overall FTA will benefit all States in India, Mr. Jain also highlighted several sectoral benefits to States such as Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Odisha, and West Bengal.
India and the EU on Tuesday (January 27, 2026) signed a document marking the conclusion of negotiations on an FTA that both sides have dubbed the ‘mother of all deals’.
“Duty-free access from an earlier duty of up to 12% in textiles, apparel and clothing provides a level playing field for exporters and boosts India’s competitiveness in the EU vis-a-vis competitors such as Bangladesh, Vietnam, and Turkey, which enjoy duty-free or preferential access under EU trade agreements,” Mr. Jain said.
Under the deal, duties on leather goods, footwear, textiles, apparel, and clothing will be entirely removed as soon as the FTA comes into force.
“Key clusters in Tamil Nadu, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and West Bengal are set to see capacity expansion and development,” Mr. Jain asserted.

The U.S. has launched two investigations under Section 301 of the Trade Act of 1974 against India and other economies to examine practices that may be ‘unreasonable or discriminatory and burden or restrict U.S. commerce’. One probe examines whether countries, including India, are using excess manufacturing capacity to export to the U.S. in a manner that hurts American businesses, while another looks at whether countries have taken ‘sufficient steps’ to prohibit imports of goods produced with forced labour.












