The Free Trade Agreement (FTA) between India and the European Union is being discussed all over the world. This deal has shaken the foundation of US President Donald Trump’s tariff policy. Both sides have called it the mother of all deals. According to a Commerce Ministry official, after this deal, exports from India to the European Union are likely to increase by Rs 6.4 lakh crore.
There are 6,000 EU companies present in India. FDI contributed more than 16.5 percent of the total Foreign Direct Investment (FDI) from all countries. From April 2000 to March 2024, the European Union received FDI worth about US $ 40.04 billion from India.
Under this deal, it will help in removing tariffs from 9,425 products and improving regulatory access. This will open new opportunities for agricultural export, textile, leather, jewelery export. Different states of India are expected to benefit from this deal with the European Union.
What will be the benefit to Maharashtra?
With this deal between India and European Union, the 12 percent tariff on the textile industry will be eliminated. Apart from this, 14 percent duty on electronics goods will be removed. The garment cluster of Ichalkaranji and the engineering, electronics and pharma hub of Pune will benefit from this. Now exports from this sector to the European Union can be increased. Pharma units of Raigarh-Thane and jewelery traders of Mumbai will also benefit from this.
This sector will benefit in Gujarat
Gujarat’s export industrial sector is getting benefits through integrated supply chain. With this deal, there is a possibility of expansion in export of textiles, diamonds and jewelery in Surat. Bharuch and Vadodara regions will also benefit because duty on 97.5 percent chemical products will now be reduced to 12.8 percent. Engineering goods and electronics from Rajkot and marine exports from Veraval are also expected to increase.
Tamil Nadu
The textile industry of Tiruppur, Tamil Nadu is expected to get a boost from this trade deal because the 12 percent tariff on it has been removed. Leather and shoe traders of Vellore-Ambur will benefit as 17 per cent duty on it has been removed. The engineering and electronics corridor in Chennai and Coimbatore will be further strengthened.
west bengal
The benefits to West Bengal are directly linked to livelihood. Darjeeling tea exports from North Bengal will get better access to the European Union. Sea food from Digha and Haldia will get a place in the European market, on which till now 26 percent duty was levied. Traditional handicrafts will also benefit from better market access.
Assam
Assam benefits from the export of tea, spices and handicraft products. Teas from Dibrugarh-Jorhat and spices from Upper Assam can expand their reach in the premium markets of the European Union. Bamboo furniture and handicrafts from Barpeta and Nalbari, as well as exports of specialty medicines, will also benefit from easier market access.
Kerala
Kerala benefits from the export of marine and spices related to the income of farmers and fishermen. According to government officials, Kochi and Alappuzha can increase exports of prawn and tuna fish, while pepper and cardamom from Idukki and Wayanad will get access to the EU market.
Karnataka
Exports of engineering goods, electronics and pharmaceuticals from Bengaluru-Tumakuru will gain momentum with the cooperation of MSME suppliers. There is also a possibility of expansion in garment exports from Bengaluru, which will create employment opportunities.
Uttar Pradesh
Uttar Pradesh has emerged as a major center of employment generation. All of them are likely to benefit from the export of leather shoes from Kanpur and Agra, furniture and handicrafts from Saharanpur, electronics from Noida and agricultural products from western Uttar Pradesh.
Rajasthan
Jewelery from Jaipur, wooden furniture and handicrafts from Jodhpur, as well as sporting goods, clothing and leather products are expected to be in demand in the EU.
Punjab
MSME-dominated sectors are getting benefits in Punjab. Demand for clothes and knitting goods from Ludhiana, sports goods from Jalandhar and light engineering products from Mandi Govindgarh is expected to increase in the European Union.
