Union Commerce and Industry Minister Piyush Goyal recently announced that India and the European Union (EU) were expected to formally sign their long-awaited free trade agreement (FTA) by December of this year, with the pact likely to come into force by February-March 2027.

Goyal said, "By reducing tariffs on a range of goods and services, the deal would substantially boost India's access to European markets." He pointed out that a significant portion of Indian exports would have duty-free access under the FTA, opening up new commercial, manufacturing and export prospects. Here's a quick look at which sectors stand to gain from the India-EU FTA.

With significant potential for growth in India's apparel and textile industries, the deal might prove to be a major victory for labour-intensive exports and MSMEs. Indian clothing and textiles are considerably less expensive on European shelves due to zero duty, which can soon result in larger customer contracts, longer production cycles and more consistent factory utilisation. The pact would give India access to the USD 263.5-billion EU textile market, where exports are currently only valued at USD 7.7 billion.

Leather (EU tax: 17 to 0 per cent)