News

Corporate Update

India–EU Trade Deal Opens New Growth Corridor For Indian Textile Exports, Says Sanathan Textiles

• By  Textile Excellence
• January 28, 2026

India’s textile and apparel sector is poised for a major export push following the conclusion of the India European Union Free Trade Agreement signed on January 27, a deal that significantly improves market access and cost competitiveness for Indian manufacturers in Europe.

The agreement provides for a phased reduction of import duties on textile and apparel products from an average 12% to 0%, creating a level playing field for Indian exporters against competitors from least developed countries such as Bangladesh, which have long enjoyed preferential access to the EU market. The European Union remains one of the world’s largest apparel importers, sourcing over US$ 90 billion worth of textiles and clothing annually.

Sanathan Textiles, a leading Indian manufacturer of polyester filament yarns, cotton yarns, and technical textile yarns, views the agreement as a strategic inflection point. The company supplies value added yarn solutions across 27 international markets and serves diverse end use segments including apparel, home textiles, technical textiles, and automotive applications.

Commenting on the development, Sammir Dattani, Executive Director of Sanathan Textiles, stated that the agreement will directly enhance India’s cost competitiveness and expand opportunities across European markets. He noted that Europe houses some of the world’s largest fashion brands and automotive manufacturers that depend heavily on imported textiles for apparel, upholstery, technical fabrics, and interior applications.

India’s textile and apparel exports to the EU currently stand at around US$ 9 billion annually. Industry estimates suggest that duty elimination, combined with supply chain diversification trends, could drive double digit export growth over the next three to five years. Indian manufacturers are increasingly positioned to move up the value chain, supplying not only fashion driven volumes but also high performance and application specific textile solutions.

Commenting on the development, Sammir Dattani, Executive Director of Sanathan Textiles, stated that the agreement will directly enhance India’s cost competitiveness and expand opportunities across European markets. He noted that Europe houses some of the world’s largest fashion brands and automotive manufacturers that depend heavily on imported textiles for apparel, upholstery, technical fabrics, and interior applications.