New Delhi/Srinagar: In a development that could reshape the export fortunes of Jammu & Kashmir’s handicraft sector, Union Minister of Textiles Giriraj Singh has indicated that the long-awaited India-European Union (EU) Free Trade Agreement (FTA) is likely to be announced in the next 4 days. Speaking at the inauguration of the 74th India International Garment Fair on Friday, the Minister confirmed that the deal is at the finish line, promising a significant edge for Indian textiles against competitors like Bangladesh and Vietnam.
The “Game-Changer” for J&K Exporters
For decades, Kashmiri carpets and Pashmina shawls have faced stiff import duties (often 9-10%) in European markets, making them more expensive than duty-free goods from other developing nations.
- The Impact: If the FTA slashes these tariffs to zero, Srinagar’s exporters could see a direct 10% price advantage, making premium J&K handicrafts more competitive in luxury hubs like France, Germany, and Italy.
- Export Data: Despite global headwinds and US tariff threats, India’s garment exports rose to ₹1,01,000 crore (Apr-Dec 2025) from ₹95,000 crore the previous year. New markets are booming, with Argentina (+77%) and Poland (+20%) showing massive demand.
Minister vs. Opposition: The “Shutdown” Row
The announcement comes amidst a heated political exchange. Leader of Opposition Rahul Gandhi recently termed the textile sector a “dead economy,” citing 50% US tariffs and alleged factory closures.
- The Rebuttal: Minister Giriraj Singh dismissed the claims at the event, stating, “This is not an industry shutdown, but a shutdown of their mind.” He cited the sector’s diversification into non-traditional markets as proof of its resilience against US protectionism.
Key Highlights: The Deal at a Glance
- Timeline: Announcement expected by Jan 27-28 (Republic Day week).
- Core Benefit: Potential removal of 9-10% import duties on Indian textiles in the EU.
- Key Markets: Germany, France, Netherlands (major buyers of Indian apparel).
FAQ Section
A: It is expected to remove import duties on Indian textiles. For J&K, this means Pashmina shawls and hand-knotted carpets become cheaper for European buyers, potentially increasing export orders.
A: Negotiations have accelerated to counter global trade disruptions and reduce reliance on single markets like the US, where tariffs are rising.
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AUTHORSHIP & TRANSPARENCY
- Reported by: KittoNews Desk
- Edited by: Senior Desk
- Source Transparency: “Statement by Union Minister Giriraj Singh at the India International Garment Fair (Jan 23, 2026), verified via Times of India.”
- Community Question: “Do you think removing European taxes will help our local artisans get better prices? Share your thoughts.”
- Accountability Footer: “Found an error? Email kittonews@gmail.com.”
