India–EU FTA to Boost Textile Exports, Investment and Jobs Across Value Chain: PDS Ltd

“The India–EU Free Trade Agreement represents a defining moment for the textile and apparel sector and for export-led companies, as tariff elimination offers exporters a compelling alternative to the U.S. market, where duties are as high as 50%. Given that ready-made garments constitute nearly 60% of India’s textile exports to the EU, tariff elimination is set to improve buyer sentiment and outlook towards India and spur higher orders and investment throughout the textile value chain. Zero-duty access is also expected to improve price competitiveness, expand labour-intensive segments like handlooms, and drive capacity expansion across key states, boosting employment for artisans, weavers, and women workers.

For the European textile value chain, the agreement sets several strategic dynamics in motion. We are witnessing a gradual shift in sourcing away from China amid trade tensions and regulatory pressure, alongside an upscaling of supply capacity as India capitalises on its recognised strengths in cotton, spinning and weaving. For PDS, our factory Knit Gallery is well placed to see higher order volumes and longer-term sourcing commitments from EU brands. We believe our present level of 33% of total annual revenue of USD 1.5 bn coming from EU region could further meaningfully benefit from India-EU FTA. We welcome this development and, over the long term, are ready to scale up, invest in quality and sustainability, and deliver world-class products to fashion buyers across Europe.” – Mr. Sanjay Jain, Group CEO, PDS Ltd