Indian garment exporters want the free trade agreement to be signed with the European Union as soon as possible. They feel Indian garment exports have a competitive advantage over Bangladesh in the EU since India has natural as well as man-made fibers coupled with top designers and people in the EU are very fashion conscious and there is a very sophisticated segment for niche garments.

In January 2016, India’s readymade garment export contracted by five per cent. The industry has been raising concerns over Vietnam securing zero-duty access to the European Union market from 2017. Vietnam has already toppled India from position as the world’s third largest garment exporter. Indian products face restrictions such as a 9.6 per cent import duty as an India-EU broad-based trade and investment agreement has yet to be finalised.

Two-way commerce in goods between India and the EU was $98.5 billion dollars in 2014-15. In the US, India is the second biggest garment exporter after China. India is looking at boosting exports in markets where she has an edge over the others to make up for the losses made in other countries. For instance Bangladesh is offering stiff competition to Indian garment exports in African countries.