Ahmedabad: Gujarat’s export sector is gearing up for a major boost following the signing of the India-EU FTA. This landmark agreement is expected to catalyse trade growth, surpassing the $136 billion recorded in 2024-25.Industry players say the pact could help double Indian exports within three years in key sectors such as textiles, pharmaceuticals, chemicals and engineering by removing tariff barriers. With its strong manufacturing base and port connectivity, Gujarat is expected to emerge as one of the biggest beneficiaries of the pact.Pathik Patwari, chairman, ICC Gujarat State Council, said the India-EU FTA is a promising development for Indian industry, noting that shifting geopolitical realities helped open up opportunities that were earlier not fully tapped. “The agreement allows Indian exporters to serve clients across global markets rather than being dependent on a single geography. Sectors such as pharmaceuticals, chemicals, textiles, engineering, and both natural and lab-grown diamonds have strong demand in Europe,” he said.Textiles set to benefit: The FTA is expected to be a turning point for India’s textile sector, improving price competitiveness and market access at a time when global sourcing is being reshuffled. With lower duties and clearer regulatory alignment, exporters see scope for higher-value and sustainable manufacturing rather than volume-led growth.Ronak Chiripal, promoter of Chiripal Group, said the agreement addresses a long-standing disadvantage for Indian exporters in Europe. “The FTA opens up a unified market of nearly 2 billion consumers and levels the playing field for Indian textiles. Predictable access and alignment with European sustainability norms will encourage investments in value-added manufacturing, man-made fibres, processing and finishing, where India has traditionally lagged,” he said.Backing the growth outlook, Bharat Chhajer, former chairman of the Powerloom Development and Export Promotion Council (PDExcil), noted that India’s textiles and apparel exports to the EU grew at a 6.6% CAGR since 2020-21, rising to $7.6 billion in 2024–25. “Readymade garments account for nearly 60% of exports. The FTA will accelerate growth opportunities for the industry,” he said.India eyes China’s share in EU chemicals market: Gujarat-based chemical manufacturers are optimistic that the India-EU FTA will sharply improve their competitiveness in Europe, where Indian products long faced steep duties. Ankit Patel, vice-chairman of Chemexcil, said import duties of up to 18% on Indian chemical products will now largely be eliminated. “Most of our chemical exports to the EU will move to a duty-free regime. This will benefit Gujarat’s chemical industry in a big way and give Indian players a real opportunity to capture market share that was so far dominated by China,” Patel said.He noted that India’s chemical exports to the EU declined from $5.34 billion in 2022-23 to $4.43 billion in 2024-25 due to geopolitical disruptions. Pharma intermediates to see gains: The pharmaceutical industry expects limited direct gains for finished formulations from the India-EU FTA, as medicines already enter the European market largely duty-free. However, exporters see clear upside in intermediates and key raw materials. Viranchi Shah, former president of the Indian Drug Manufacturers’ Association, said the agreement would support higher exports of pharma intermediates and key starting materials (KSMs) through duty elimination.“While formulations may not see a direct benefit, the removal of duties on intermediates and select KSMs will drive export growth,” Shah said, adding that the trade pact would also lead to smoother and more predictable market access.
