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From UP, Assam to Tamil Nadu, how states will benefit from India-EU trade deal
The deal is set to widen market access across sectors, benefiting MSMEs, manufacturers, farmers and professionals by easing tariffs and regulatory barriers.
The India-European Union Free Trade Agreement (FTA) is expected to significantly deepen economic ties, with Indian exports to the EU projected to rise by ₹6.4 lakh crore, officials said. The deal is set to widen market access across sectors, benefiting smaller industry, farmers, students, and skilled professionals by easing tariffs and regulatory barriers.
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By eliminating tariffs across 9,425 product lines and improving regulatory access, the agreement opens new opportunities for labour-intensive sectors such as textiles, apparel, leather, gems and jewellery, handicrafts, and agriculture exports including tea, spices, and marine products, according to information received from people familiar with the details.
At the same time, high-technology manufacturing exports such as engineering goods, electronics, pharmaceuticals, and medical devices are expected to scale up their presence in EU markets.
Here's an overview of what states will gain
Maharashtra
With textiles tariffs dropping from 12% to zero and electronics from 14% to zero on 99.6% of exports, Maharashtra’s garment cluster in Ichalkaranji, and the engineering, electronics and pharma hubs in Pune can scale up EU-bound exports. Pharma units in Thane-Raigad, and gems and jewellery exporters in Mumbai, also stand to benefit.
Gujarat
Gujarat’s export-led industrial belt gains across integrated supply chains. Surat is poised to expand textiles, diamonds and jewellery exports, while Bharuch-Vadodara benefits too, as tariffs on 97.5% of chemical exports fall from 12.8% to zero.
Engineering goods and electronics from Rajkot and marine exports from Veraval are also expected to rise.
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Tamil Nadu
Tamil Nadu sees strong gains in globally competitive labour-intensive clusters.
Tiruppur's apparel becomes more competitive as textile tariffs fall from 12% to zero, while Vellore-Ambur's leather and footwear exporters benefit from tariff cuts from 17% to zero.
Engineering and electronics corridors in Chennai and Coimbatore are set to deepen EU linkages, officials told HT.
West Bengal
West Bengal’s gains are closely tied to livelihoods. Darjeeling tea exports from North Bengal get improved EU access, while seafood exports from Digha and Haldia, currently facing tariffs of up to 26%, benefit from preferential entry. Traditional handicrafts also gain from better market access.
Assam
Assam gains through tea, spices and artisan exports. Tea from Dibrugarh–Jorhat and spices from Upper Assam can expand into premium EU markets. Bamboo-based furniture and handicrafts from Barpeta and Nalbari, along with niche pharmaceutical exports, also benefit from easier market entry.
Kerala
Kerala benefits through marine and spice exports linked to farmer and fisher incomes. Kochi and Alappuzha can scale shrimp and tuna exports, while pepper and cardamom from Idukki and Wayanad gain access to a wider EU market, according to government officials.
Karnataka
Karnataka is positioned to convert preferential access into growth across advanced manufacturing. Engineering goods, electronics and pharmaceuticals from Bengaluru–Tumakuru gain export momentum, supported by MSME suppliers. Apparel exports from Bengaluru also stand to expand, supporting job creation.
Andhra Pradesh
Andhra Pradesh’s coastal economy sees a boost as shrimp and seafood exports rise from Visakhapatnam and Kakinada. Visakhapatnam is also set to expand pharmaceutical and electronics exports, strengthening the state’s manufacturing base.
Telangana
Telangana gains across both textiles and high-value manufacturing. Apparel exports from Hyderabad–Warangal are expected to grow, while Hyderabad strengthens its role in pharmaceutical, electronics, medical devices and engineering exports, according to government sources.
Punjab
Punjab benefits in MSME-dominated clusters. Garments and knitwear from Ludhiana, sports goods from Jalandhar, and light engineering from Mandi Gobindgarh are expected to see higher EU demand.
Rajasthan
Rajasthan’s export-ready craft clusters gain from improved access. Jewellery from Jaipur, wooden furniture and handicrafts from Jodhpur, along with sports goods, Bandhej textiles and leather products, are expected to see stronger EU demand.
Uttar Pradesh
Uttar Pradesh emerges as a major job generator. Leather footwear exports from Kanpur and Agra, furniture and handicrafts from Saharanpur, electronics from Noida and agri-products from western UP are all set to benefit.
Overall, the India–EU FTA offers a state-by-state pathway to scale India’s most competitive export clusters — combining job-intensive manufacturing with agri-linked exports and high industrial growth.
