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India EU FTA Is A Once In A Generation Opportunity But Execution Will Decide Outcomes Says Sitaram Spinners CEO

• By  Textile Excellence
• January 30, 2026

The India European Union Free Trade Agreement offers Indian textiles a rare chance to reposition on the global stage, but success will depend on preparedness rather than policy alone, according to Gautam Ganeriwal, CEO of Sitaram Spinners Pvt. Ltd. and Chairperson of Young Entrepreneurs Group (YEG) of Confederation of Indian Textile Industry (CITI).

The agreement grants Indian exporters zero duty access to a European textile and apparel market valued at nearly US$135 billion, removing a tariff disadvantage of 9 to 12%. Mr. Ganeriwal views this shift as a structural opening that could move India from volume driven exports to value led manufacturing, provided domestic bottlenecks are addressed in parallel.

Europe sets some of the highest global benchmarks for textiles. Buyers demand reliability, traceability, speed and strict ESG compliance. Sustainability is no longer a differentiator. It has become a baseline requirement covering renewable energy usage, carbon reporting and water stewardship.

Power competitiveness remains a central concern. Textile manufacturing consumes significant energy and India’s electricity costs continue to exceed those of key competitors. Streamlined access to green power and rationalisation of electricity levies are essential to protect both cost structure and environmental credibility.

Raw material pricing also needs urgent alignment. Cotton and manmade fibre costs often remain above global averages; diluting gains achieved through tariff elimination. Open and duty-free access to inputs is critical for margin stability and long-term buyer confidence. Industry estimates suggest that effective execution could lift textile exports to the EU by over 30% within five years. The coming 12 to 15 months will determine whether India converts opportunity into leadership.

The agreement grants Indian exporters zero duty access to a European textile and apparel market valued at nearly US$135 billion, removing a tariff disadvantage of 9 to 12%. Mr. Ganeriwal views this shift as a structural opening that could move India from volume driven exports to value led manufacturing, provided domestic bottlenecks are addressed in parallel.