The Confederation of All India Traders (CAIT) has welcomed the landmark India-European Union Free Trade Agreement (FTA), calling it a historic breakthrough that could reshape India's trade landscape, accelerate exports and open unprecedented opportunities for millions of traders, MSMEs and artisans across the country.
Reacting to the agreement, Sumit Agarwal, National Joint Secretary General of CAIT, said the deal reflects India's growing economic clout and negotiating strength on the global stage under the leadership of Prime Minister Narendra Modi. He described the agreement as a clear signal of India's confident emergence as a global trade powerhouse.
"With preferential and near zero-duty access to a 450-million-strong, high-income European market, Indian products will gain unprecedented competitiveness. This agreement has the potential to take India's exports to the EU from the current level of around USD 75 billion to well over USD 120 billion in the coming years," Agarwal said.
CAIT noted that the benefits of the agreement will be especially significant for labour-intensive and trader-driven sectors such as textiles and garments, leather, gems and jewellery, handicrafts, marine products, pharmaceuticals, engineering goods, chemicals and processed foods. These sectors not only generate large-scale employment but also have deep linkages with small manufacturers, exporters and traditional artisans, many of whom depend heavily on European markets for growth.
According to CAIT, the agreement will enhance the price competitiveness of Indian goods through tariff reductions, create new export demand and scaling opportunities for traders, strengthen India's integration into global value and supply chains, and generate employment through manufacturing-led growth. It is also expected to help diversify India's export destinations, reducing risks associated with over-dependence on a limited set of markets.
Agarwal stressed that the trade pact is closely aligned with India's national priorities and the Prime Minister's vision of "Make in India", "Vocal for Local", and "Atmanirbhar Bharat". "This agreement is not merely about exports; it is about economic confidence, strategic autonomy and long-term prosperity for Indian traders," he said. He added that CAIT would proactively engage with traders and MSMEs across the country to ensure they are fully prepared to capitalise on the opportunities arising from the deal.
However, CAIT also underlined that the full benefits of the agreement will depend on effective implementation on the ground. The traders' body urged the government to focus on widespread awareness campaigns, capacity building, compliance support and export facilitation, especially for businesses in Tier-2 and Tier-3 cities. Such measures, it said, are essential to ensure that the gains from the India-EU trade agreement are broad-based and inclusive and that small traders and entrepreneurs are not left behind in India's next phase of export-led growth.
