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India-EU Trade Pact Can Lift Textile Exports 25% If Compliance Gaps Are Closed Says CMAI Mentor

• By  Textile Excellence
• January 30, 2026

The India-EU trade treaty could redefine the future of Indian textiles at a time of intense global pressure, according to Rahul Mehta, Chief Mentor of the Clothing Manufacturers Association of India. He described the agreement as a timely breakthrough for an industry facing heavy stress from recent US tariff actions and weak demand across key western markets.

Indian textile and apparel exports stood at nearly US$36 billion in 2024, while shipments to the European Union accounted for close to US$9 billion. Removal of tariff barriers under the new treaty opens access to a European apparel and textile market valued at over US$250 billion. Mr Mehta believes this access creates a strong opportunity to offset losses in the US market, where additional duties have tightened margins and reduced order visibility.

He stressed that success will depend on execution rather than policy intent. European buyers place strong emphasis on factory compliance, product traceability, chemical safety and social standards. Factories that align operations to these benchmarks stand to gain long term sourcing commitments.

Mr Mehta estimates that disciplined compliance upgrades across manufacturing units could help India grow textile and apparel exports by 25% within the next two years. Industry readiness, speed of adaptation and buyer confidence will shape outcomes in this new trade phase.

He stressed that success will depend on execution rather than policy intent. European buyers place strong emphasis on factory compliance, product traceability, chemical safety and social standards. Factories that align operations to these benchmarks stand to gain long term sourcing commitments.