Bhubaneswar: Commerce and Industry Minister Piyush Goyal on Tuesday said the recently concluded India-European Union trade agreement could significantly strengthen India’s textile sector and generate millions of new jobs, as the country positions itself to gain a larger share of the European market.
Speaking at the India-EU Summit in New Delhi, Goyal noted that the deal, finalised on January 27, 2026, will reduce or eliminate duties on over 90 per cent of traded goods. He said this would allow Indian exporters to compete more effectively in the European Union’s textile import market, valued at around USD 250 billion and currently dominated by Bangladesh.
Goyal pointed out that Bangladesh is expected to lose its duty-free access to the EU by 2029, creating a major opportunity for India. “This agreement can help India emerge as a leading supplier to Europe, especially in textiles, apparel and value-added products,” he said.
The minister projected that the deal could lead to the creation of 6–7 million new jobs in the textile sector over the coming years. India’s textile and apparel industry already employs close to 40 million people and is a key contributor to manufacturing exports.
Industry associations in major textile hubs such as Uttar Pradesh and Tamil Nadu welcomed the agreement, calling it a potential game changer for exports, investment and employment. Manufacturers said duty reductions would improve price competitiveness and encourage expansion of production capacity.
Beyond textiles, Goyal said the broader India-EU economic partnership aims to raise bilateral trade to USD 250 billion by 2031, deepening cooperation across manufacturing, services, technology and sustainable development.
Negotiations on the trade deal had been underway for several years, and officials described its conclusion as a major milestone in strengthening India’s economic engagement with Europe.
-OdishaAge
