Rama Krishna Sangem
EU-India FTA that was announced January 27 offers a huge opportunity for our textiles sector, one of the largest employment providers after agriculture, in the country. The only thing needed to boost this semi-automated and partially streamlined sector is governmental support that we wish in the union budget to be presented on Feb 1, Sunday.
Mere signing an FTA is not enough, there should be right ecosystem for any sector to grow, of course, that comes with government push. Signing an FTA is like laying a highway road and what is needed next is its usage by vehicles and passengers. Unless there is enough traffic, the purpose of a highway is not served. So is this EU-India FTA that lowers tariffs on India textile exports. What we now need is stepping up of our textile sector, equipping it to meet the tastes and standards of European consumers.
Here are some basic details of the sector: India is the world’s sixth-largest exporter of textiles and apparel, with exports reaching US$ 9.40 billion in April-June 2025. The sector, which includes apparel, cotton, and handicrafts, registered a 9.4% year-on-year growth in November 2025, driven by strong demand in the US, UAE, UK, and EU. Ready-made garments dominate with a 45% share.
Export Highlights (2025-26): Total Exports: During April-June 2025, total exports stood at US$ 9.40 billion. Segment Breakdown: Ready-made garments (RMG) account for 45% of exports, followed by Cotton Textiles (30%) and Man-Made Textiles (12%). Growth: In November 2025, exports rose to $2.855 billion, a 9.4% increase from the previous year.
Big Markets: The USA remains the largest market (accounting for 28.97% of exports in FY25), followed by the UAE, UK, Germany, and Bangladesh. Performance: Despite global headwinds, the sector demonstrated resilience with significant growth in exports to new markets like Egypt and Saudi Arabia.
Our exports can grow still furthrer:
We rank at 6th largest exporter globally, with a value of total textile and apparel exports were approximately US$ 37-38 billion in FY25. Global Share: India holds around 4% of the global trade in textiles and apparel. So, there is huge potential to improve our presence in the world market.
The government is focusing on FTAs (15+ agreements) and diversifying to markets like the EU to boost competitiveness. Growth areas include a 3.42% rise in Ready Made Garments (RMG) and a 5.56% increase in Jute products during the first half of FY25-26.
So, now all eyes are on FM Nirmala Sitharaman who is going to present her 2026-27 budget in the parliament on Sunday. Whether India is ready to reap benefits of EU-India FTA, we will know in just four days.
