Union Minister of Commerce and Industry Piyush Goyal announced this week that the finalized India-European Union Free Trade Agreement (FTA) is set to catalyze India's transformation into a premier global hub for chemical manufacturing.

Following a high-level meeting on Tuesday with the global board of BASF, led by Chairman Dr. Markus Kamieth, Goyal emphasized that the agreement unlocks unprecedented avenues for domestic production and integrates Indian industries more deeply into international supply chains.

The Minister highlighted India’s competitive edge, fueled by a young, skilled workforce and a robust domestic market, as key drivers that will attract major global chemical players to expand their footprint in the country.

Beyond the chemical sector, Goyal projected a massive windfall for the Indian textile and garment industry, which is currently the nation’s second-largest employer after agriculture.

With the implementation of the FTA, textile exports to the EU are expected to skyrocket from the current USD 7 billion to an estimated USD 30–40 billion annually.

Addressing long-standing concerns regarding Bangladesh's lead in this sector, Goyal noted that the neighboring country previously enjoyed zero-duty access to the EU as a Least Developed Country (LDC), allowing it to capture a USD 30 billion share of the market while Indian goods faced duties as high as 12%.

The new trade deal effectively levels the playing field, granting Indian exporters the same duty-free access and potentially creating up to seven million new jobs in the sector.

The Minister described the conclusion of the FTA as a defining moment in India’s strategic global engagement, signaling a shift from a defensive trade posture to one of bold, mutual complementarity with developed economies.

By eliminating tariffs on over 99% of Indian exports by trade value, the pact provides a significant boost to labor-intensive industries including leather, gems, and engineering goods.

Goyal reiterated that this "mother of all deals" not only secures predictable market access for Indian professionals and MSMEs but also cements India’s position as a trusted and resilient partner in the global trade landscape during an era of significant geopolitical uncertainty.

Source: ANI