The Free Trade Agreement (FTA) between India and the European Union is being discussed all over the world. Getting preference for Indian exports in FTA with EU is a game changer. This deal has opened up export opportunities of 75 billion dollars (Rs 6.41 lakh crore) for the country, in which exports worth 33 billion dollars in labor-intensive sectors like textiles, leather, marine products, jewelery are going to get huge benefits due to getting priority under the FTA. This step of India-European Union has put Turkey and Bangladesh to sleep.
Fear in Bangladesh due to India-EU deal
The apparel and textile industry is expected to benefit the most from this deal between India and the European Union. Bangladesh has been busy strengthening its hold in this sector for the last few years. This deal is going to help Indian exporters a lot in excluding Turkish goods from the European market. 80 to 85 percent of Bangladesh’s total export income comes from the textile industry. In such a situation, this deal can break the back of Bangladesh’s economy.
The scope of the country’s apparel and textile industry will increase
According to experts associated with the Indian industry, this deal will expand the scope of the country’s apparel and textile industry to a large extent. According to news agency PTI, CII Director General Chandrajit Banerjee said that this historic agreement is a significant breakthrough in India’s global trade and further strengthens the partnership between the two major democracies and economies, which together contribute about 25 percent of global gross domestic product (GDP). He said that the country will get huge benefit in apparel and textile, leather and footwear, jewellery, marine products, engineering products, automobile, agriculture and food items, IT and IT related sectors.
Turkey-Bangladesh will disappear from European market
India and European FTA will open the European market for Indian clothes without any duty. This will increase competition for Indian goods in European countries. Europe has been the biggest export destination for Bangladesh. EU’s share in its total exports is 45 percent to 40 percent. After the removal of tariffs, India will compete with countries like Bangladesh, Turkey and Vietnam in the European market and may be in a position to replace them. Due to this, there is an atmosphere of fear among the two favorites of Pakistan’s CDF Asim Munir.
