EPCH Welcomes the Landmark India-EU Free Trade Agreement

New Delhi/NCR – 27th January’2026 – The Export Promotion Council for Handicrafts (EPCH) welcomes the signing of the India–European Union Free Trade Agreement (India–EU FTA) at New Delhi, calling it a landmark step that strengthens India’s trade architecture with one of the world’s largest and most quality-conscious consumer markets. The agreement will boost market access for Indian exports across the EU’s 27-member countries with a clear pathway for tariff reduction and a more facilitative trade environment. This historic milestone is poised to unlock new opportunities for India’s handcrafted exports ranging from art metalware and woodcraft to textile-based handicrafts, fashion jewellery, lifestyle accessories and GI products across the EU market.

Welcoming the step, Dr. Neeraj Khanna, Chairman, EPCH, said, “We express our sincere gratitude to Prime Minister Narendra Modi for advancing India’s global trade leadership and export competitiveness. The signing of the India–EU FTA is a defining milestone for India’s export ecosystem and a major opportunity for the handicrafts sector. With tariff reduction to 0% once entry into force, Indian handmade products can strengthen their presence across EU markets.”

Dr Khanna further shared “We have observed that over the years, European buyers are increasingly looking for authenticity, sustainability, design depth and strong storytelling that our India Handmade naturally offers. Our recent participation at international design platforms namely ‘Maison&Objet, Paris, France’ has shown encouraging optimism among visitors and buyers for Indian handcrafted home, lifestyle and décor products. With an improved trade framework, we believe this interest can translate into improved partnerships, higher value orders and a stronger global positioning of the ‘Magic of Gifted Hands’.”

“The European Union is a key export market for Indian handicrafts where exports to the EU during FY 2024-25 stood at USD 864.28 million (Rs 7309.72 crores), contributing over 20% of India’s total handicrafts exports. The India–EU FTA once ratified and enforced, we are optimistic of achieving around 10% CAGR within the next five years, as tariff advantages and improved market facilitation begin to translate into higher volumes and deeper buyer engagement.” Dr Khanna added further

Echoing the similar sentiments, Dr. Rakesh Kumar, Director General in the role of Chief Mentor, EPCH and Chairman, IEML shared that “the India–EU FTA comes at a crucial time when Indian exporters are deliberately building resilience through market diversification and deeper engagement with other high-value destinations. The signing of this agreement offers a structured and predictable pathway to expand India’s share in Europe by improving competitiveness through tariff rationalisation while systematically eliminating non-tariff barriers which often incurs the most significant cost and complexity for MSMEs in terms of compliance time, documentation, testing and approvals.”

Dr. Kumar further added that “we will intensify our trade facilitation measures such as warehousing, fulfilment and showroom facilities in EU to enable just-in-time delivery and last-mile logistics and will further support exporters by facilitating direct market access through Cash & Carry platforms, integrating technology with traditional craftsmanship to help Indian handmade products reach European buyers faster and more efficiently.”

Sagar Mehta, Vice Chairman, EPCH, said that “For us, EU is a high-value market where buyers look for consistent quality, reliable fulfilment and compliance readiness. The India–EU FTA is a big opportunity and we must convert it through stronger exporter preparedness in packaging, product presentation, delivery reliability and faster response cycles. Now with improved market access, we expect deeper engagement from European retail, sourcing agents, e-commerce and institutional buyers, creating more opportunities for Indian craft enterprises to scale responsibly.

“We are also looking ahead to our participation in EU’s largest trade fair ‘Ambiente in Frankfurt, Germany’ where over 500 Indian exporters across various product categories participate, amongst which more than 50 handicraft exporters will be present to showcase India’s Incredible Handicrafts. We are hopeful that the signing of this agreement will further boost confidence among Indian exporters and European buyers and will give an impetus push to this historic FTA” Mehta added further.

Highlighting importance of FTA, Rajesh Rawat, Executive Director, EPCH, shared that “At a time when tariff-related uncertainties are impacting our trade flows, this agreement opens an important opportunity for Indian Handicraft exporters to accelerate market diversification and deepen their presence in EU. We sincerely appreciate the Government of India’s sustained efforts in signing this significant agreement.”

Rawat further added, “Now EPCH will intensify enablement for the handicrafts sector through focused capacity-building, design and product development support and clear guidance on standards and documentation, so that exporters especially MSMEs and first-time exporters can leverage the FTA effectively. We believe that this agreement can be a strong multiplier for employment generation and improved livelihoods across craft clusters by expanding demand, reducing trade frictions and unlocking new buyer networks in EU.”