BS EDIT: India–EU FTA can increase labour-intensive exports

By Business StandardPublished On Jan 29, 2026

Labour-intensive sectors gain most

The India–EU FTA creates new opportunities for labour-intensive sectors such as textiles, apparel, footwear, leather and marine products

Strong employment linkages

These MSME-led sectors support large employment clusters across India, linking export growth directly to job creation

Market access matters

Tariff elimination in the EU market could significantly boost Indian exports, especially in textiles and apparel

Narrowing a long-standing disadvantage

Lower tariffs help Indian producers compete better against Asian rivals with preferential access to Europe

Non-tariff barriers remain a challenge

Strict EU standards on quality and sustainability pose compliance challenges, particularly for MSMEs

Turning access into jobs

Domestic reforms in logistics, compliance and skilling are key to translating exports into employment