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New Delhi | January 28 :
The newly concluded India-European Union Free Trade Agreement (FTA) is expected to unlock massive business opportunities for Indian Micro, Small, and Medium Enterprises (MSMEs), according to the PHD Chamber of Commerce and Industry (PHDCCI).
PHDCCI said the trade pact opens access to a vast USD 23 trillion market, covering all 27 European Union countries.
Gateway to a USD 23 Trillion Economy
Speaking to ANI, Ranjeet Mehta, CEO and Secretary General of PHDCCI, called the India-EU deal a pivotal economic milestone.
“India-EU deal opens the door for Indian industries to a USD 23 trillion economy. The EU consists of around 27 countries,” Mehta said.
He added that the agreement will provide major relief to MSMEs, especially those affected by recent US tariff measures.
Boost for Labour-Intensive Sectors
Mehta said several labour-intensive sectors are likely to benefit the most from the agreement.
These include:
- Textiles
- Apparel
- Gems and jewellery
“These sectors will definitely benefit. The deal will also create more employment opportunities in India,” he said.
He highlighted that the combined population of India and the EU exceeds 2 billion people, accounting for nearly 25 percent of the global economy.
Strong Focus on Manufacturing and Logistics
The agreement also promotes deeper structural integration between India and the EU.
Mehta said the partnership will strengthen India’s role in global value chains, particularly in:
- Manufacturing
- Logistics
- Technology-driven sectors
He described the trade pact as a win-win situation that will encourage higher investment and technological collaboration.
Positive Outlook for Manufacturing and Jobs
Recent data from the PHDCCI SME Index shows strong optimism within the manufacturing sector.
A survey of industry members indicates rising domestic production and increased hiring intentions.
“The industry plans to hire more people in the coming quarters. Manufacturing growth looks robust,” Mehta said.
MSMEs Upbeat About Growth
PHDCCI analysis suggests that demand for goods and services remains strong.
The industry body expects the positive momentum to continue in the coming months due to the favourable trade environment.
“MSMEs are upbeat about the market. All MSMEs are set to gain through this India-EU FTA,” Mehta added.
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