India and the European Union (EU) have successfully concluded the Free Trade Agreement (FTA), often hailed as the "Mother of All Deals. " This landmark agreement comes at a crucial time when global trade is facing uncertainties and tariff barriers. The deal is projected to increase India's exports to the EU by a staggering ₹6. 4 lakh crore, marking a new era for the Indian economy.
Opening Doors for MSMEs and Professionals
The core strength of this FTA lies in its inclusivity, while it's designed to benefit not just large corporations but also micro, small, and medium enterprises (MSMEs), manufacturers, farmers, and professionals. By proposing the elimination of 9,425 tariff lines, the deal provides unprecedented market. Access for labor-intensive sectors such as textiles, leather, gems and jewelry, and marine products.
Maharashtra: A Manufacturing Powerhouse
Maharashtra is set to witness a surge in orders for both. Large-scale manufacturing and MSMEs due to strong demand from EU markets. With tariffs on 99. 6% of exports dropping to zero—including a reduction from 12% on textiles and 14% on electronics—industrial clusters in Ichalkaranji and Pune will integrate more deeply into the EU supply chain. Pharmaceutical exports from Thane-Raigad and jewelry from Mumbai will also see significant growth.
Gujarat: Dominating Chemicals and Diamonds
Gujarat's export-oriented industrial landscape will thrive under this deal. The chemical sector in Bharuch-Vadodara will benefit from tariffs dropping from 12. 8% to 0%. Surat’s diamond and textile industries are expected to see a production boom, while Rajkot’s engineering goods and Veraval’s marine exports will strengthen the coastal economy and processing units.
Tamil Nadu: The Textile and Leather Hub
Tamil Nadu’s labor-intensive clusters are poised for immediate growth. Apparel exports from Tiruppur will become Notably more competitive as duties drop from 12% to zero. Similarly, leather and footwear exporters in the Vellore-Ambur sector will benefit from a massive. Duty reduction from 17% to zero, creating thousands of new jobs in the region.
Uttar Pradesh: Boosting Crafts and Leather
Uttar Pradesh stands as one of the biggest potential hubs for job creation under this FTA. Leather footwear exporters in Kanpur and Agra can now scale their operations for the European market. Saharanpur’s furniture and handicraft exports, along with Noida’s electronics manufacturing, will see a substantial rise in demand, diversifying the state's export portfolio.
West Bengal and Assam: Tea and Marine Wealth
West Bengal will see direct benefits in its tea and marine sectors. Darjeeling tea will gain preferential access to European markets, while seafood exports from Digha and Haldia, currently facing up to 26% duty, will become much more affordable in the EU, while in Assam, tea from Dibrugarh-Jorhat and bamboo-based handicrafts from Barpeta will find premium buyers across Europe.
Strategic Gains for Karnataka, Kerala, and Andhra
Karnataka’s advanced manufacturing in Bengaluru and Tumakuru is well-positioned to convert this access into growth for pharma and electronics. Kerala will benefit from high demand for spices and seafood, directly impacting the income of farmers and fishermen. Andhra Pradesh and Telangana will see a surge in pharmaceutical. And electronic exports, strengthening their roles in the global value chain.
Punjab and Rajasthan: Empowering Artisans
Punjab’s MSME-dominated sectors like Ludhiana’s textiles and Jalandhar’s sports goods are set for an export expansion. In Rajasthan, Jaipur’s jewelry and Jodhpur’s wooden furniture will reach wider European audiences. This deal ensures that small-scale artisans and local producers get the international recognition and price they deserve.