FTA Effects on Indian Textiles: Opportunities and Challenges

What is an FTA? A free trade agreement (FTA) is a pact between two or more countries to eliminate or reduce tariffs, duties, quotas and other trade barriers. The goal is fair, faster, and increased trade, along with cultural and economic cooperation

- By Gopinath Rout, Himalaya Cotton Yarn Ltd, Plant Head, BE (Textile), EMBA, C Text, UK

Positive Impacts of FTA on Indian Textiles

Tariff elimination – reduced import duties make Indian products cheaper in FTA Partner countries

Increased exports – competitive pricing boosts demand for Indian garments, home textiles, technical and medical textiles

Market expansion – entry into new markets like the UK and enhanced access in existing ones

Enhanced competitiveness – Indian exporters gain an edge over non-FTA countries due to cost advantages

Value addition growth – push for technical, functional and sustainable textiles innovations

Reputation strengthening – Indian textiles seen as reliable and competitive

Manufacturing hub growth – key regions like Tripura, Surat, and Delhi NCR benefit from increased activity and investments

Opportunities for Indian Textiles Under FTA