Amid US Tariff Hurdles, India’s Textile Sector Pins Hopes On TEPA
The Confederation of Indian Textile Industry (CITI) has expressed optimism about the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), which came into force on October 1, 2025. The agreement is expected to significantly boost exports of Indian textile and apparel products to Europe.
“The TEPA can serve a much bigger purpose than just expanding our exports to Iceland, Liechtenstein, Norway, and Switzerland, the four member states of the EFTA,” said CITI Chairman Shri Ashwin Chandran, highlighting the potential of the trade deal for India’s textile and apparel sector.
Shri Chandran noted that TEPA will complement the benefits likely to arise from the India-EU Free Trade Agreement, which is expected to be concluded by the end of 2025. He also emphasized that TEPA aligns with Indian exporters’ broader strategy to reduce dependence on the United States. “The TEPA will come in most handy as part of our diversification strategy,” he added.
The US remains the single-largest market for Indian textile and apparel exports, accounting for nearly 28% of sector revenues. In FY2024-25, India’s textile and apparel exports to the US totaled nearly US$ 11 billion. However, the imposition of a 50% US tariff on Indian goods, effective August 27, has posed a major challenge for the industry.
Trade between EFTA states and India reached € 5.54 billion in 2023, with EFTA exports to India totaling € 2.33 billion, led by mechanical appliances, pharmaceuticals, and electrical machinery. Imports from India amounted to € 3.21 billion, primarily driven by organic chemicals, clothing accessories, and machinery.
According to CITI, India was the seventh-largest supplier of textile and apparel products to Switzerland in 2024, accounting for 3.5% of the country’s total textile imports. Switzerland imported US$ 367.63 million worth of textile and apparel products from India, with apparel alone comprising 85% of the total imports.
