India–EU FTA to Benefit Punjab’s Manufacturing & Exports Industries: FICO
The proposed Free Trade Agreement (FTA) between India and the European Union is expected to significantly boost Indian manufacturing and exports, with nearly 90 per cent of Indian shipments likely to become duty-free, according to the Federation of Industrial & Commercial Organization (FICO).
City Air News
Jan 29, 2026 09:04
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Ludhiana, January 29, 2026: The proposed Free Trade Agreement (FTA) between India and the European Union is expected to significantly boost Indian manufacturing and exports, with nearly 90 per cent of Indian shipments likely to become duty-free, according to the Federation of Industrial & Commercial Organization (FICO).
Gurmeet Singh Kular, President, FICO said the agreement would provide Indian exporters a strong competitive edge, especially in labour-intensive sectors, due to the wide cost differential between India and Europe. Average labour costs in India is much less than that of in Europe, giving Indian manufacturing a natural advantage without impacting domestic production in Europe. He added that the FTA would strengthen labour-intensive exports and the services sector, expand India’s global footprint, and generate large-scale employment. Agreements with high-income economies have historically benefitted Indian industry, and the India–EU pact is expected to deliver similar gains.
Ashpreet Singh Sahni, Organizing Secretary, FICO said that Punjab’s manufacturing and export-oriented industries are likely to see major benefits through improved access to European markets. Key sectors such as apparel, textiles, sports goods, knitwear, hosiery, and garments—particularly from Ludhiana—along with tractor parts, auto components, engineering goods, bicycles, hand tools, and food processing, are expected to gain from higher demand and new supply-chain opportunities. He highlighted that auto components would be among the biggest beneficiaries. The FTA is expected to further enhance competitiveness, technology collaboration, and long-term investment.
FICO welcomed the proposed India–EU FTA as a strategic step to strengthen Make in India, deepen India–EU trade ties, and position Punjab as a key contributor to India’s manufacturing and export growth.
