Madhu Sudhan Bhageria: The EU–India trade agreement is not just an export opportunity, but a quality filter

We see the EU–India trade agreement as a historic positive development for India’s polyester and man-made fibre industry, particularly for polyester filament yarns and fabrics. By lowering trade barriers, the agreement creates a more level playing field for Indian polyester products in the European market. Reduced import duties improve the competitiveness of polyester filament, MMF fabrics, and downstream textiles, enabling Indian manufacturers to compete more effectively with suppliers from Bangladesh, Vietnam, Cambodia and Turkey.

For filament manufacturers (POY, FDY, DTY), the impact will be both direct and indirect. Reduced trade barriers improve the competitiveness of Indian polyester filament yarns in the European market, allowing them to compete more effectively with Chinese yarn supplies, while growing garment and fabric exports to Europe will further increase demand for consistent-quality polyester yarns with reliable performance. However, access to the EU market will increasingly depend on quality, consistency, sustainability, and traceability, along with compliance on chemicals and processes. We believe this is a great opportunity for the Indian industry, as it encourages technology upgradation and long-term capability building across the polyester value chain.

Overall, the EU–India trade agreement is not just an export opportunity, but a quality filter. Manufacturers with scale, process discipline, sustainability credentials, traceability, and strong downstream linkages are likely to benefit the most. This FTA opens the door but only world class filament will walk through it.

This view is presented by Madhu Sudhan Bhageria, Chairman and Managing Director of Filatex India Limited