Ahmedabad, Jan 27 (NationPress) The formalization of the Free Trade Agreement (FTA) between India and the European Union has ignited a surge of enthusiasm among textile merchants in Surat, recognized as one of India’s largest textile centers.

The deal, concluded on Tuesday, is anticipated to considerably enhance exports by granting Indian textile products better access to markets in 27 European nations. Industry leaders believe that the FTA will enable Surat traders to market their goods in Europe at more competitive rates, resulting in increased exports, sales, and profit margins.

As part of the agreement, tariffs on 96.6 percent of European goods entering India will be lowered or removed, while Indian textile exports to Europe will benefit from tariff reductions, thus making them more competitive.

Kailash Hakim, President of the Federation of Textile and Trade Associations, Surat, noted that this agreement would assist the sector in recovering losses incurred due to heightened tariffs in the US market. He expressed gratitude towards Prime Minister Narendra Modi, asserting that the India-EU trade pact would not only mitigate current challenges but also open pathways for growth and international expansion for Surat’s textile industry.

Supporting this sentiment, Sushil Gupta, a local textile entrepreneur, emphasized that the FTA would reinforce India’s export capabilities and provide enduring stability for the sector. He remarked that enhanced access to European markets would empower traders to scale their operations and seek new global partnerships.

Johnny Rathod, another textile trader from Surat, stated that the agreement would motivate the adoption of European-quality machinery, gradually replacing Chinese machines and enabling superior production quality. He described the FTA as a monumental advancement for the textile industry, especially for hubs like Surat that are pivotal in driving India’s textile exports.

In New Delhi, European Commission President Ursula von der Leyen labeled the agreement as “the mother of all deals,” while Prime Minister Modi referred to it as “historic.” The pact encompasses substantial tariff reductions, including the phased removal of duties on most EU exports such as chemicals, machinery, electrical equipment, aircraft, and spacecraft. Furthermore, import tariffs on motor vehicles, currently as high as 110 percent, will be reduced to 10 percent under a quota of 250,000 vehicles.

India will also decrease tariffs on EU imports like wine, beer, and olive oil. Beyond trade, the agreement is expected to foster a joint security partnership, enhance investment streams, improve market access, and strengthen supply-chain connections between the two regions.