The EU–India free trade agreement is the largest trade deal India has negotiated, and garment buyers in Europe keep asking the same question: does it lower the duty on my dresses yet? The short answer, as of 7 October 2026, is no. It is concluded but not signed, and it does not apply. This guide sets out what the agreement would change for women’s garments, the condition that will decide who benefits, and where things stand in the approval process. All of it is from official EU texts.
In the news, 5 October 2026 (reported, not an official text): France’s minister for European affairs, Benjamin Haddad, said the deal could remove €4 billion a year in tariffs and double EU–India trade. That €4 billion is the European Commission’s estimate of duty savings for EU exporters selling to India. For garments shipped from India to Europe, what matters is the EU’s own tariff schedule, set out below.
Where it stands
| Step | Status |
|---|---|
| Negotiations concluded | Done, 27 January 2026 |
| Commission proposes the signing decision to the Council | Done, 11 September 2026 |
| Council decides to sign; agreement signed | Not yet |
| European Parliament consent | Not yet |
| Ratification on both sides; entry into force | Not yet, and no official date announced |
Until entry into force, Indian garments pay the EU’s GSP rate: 9.6% on most clothing instead of the standard 12%, and 6.4% instead of 8% on woven scarves.
What it would change: duty to 0% from day one
The draft EU tariff schedule eliminates duty on every garment line, knitted and woven, on the day the agreement enters into force. There is no phase-in for clothing. On a shipment of cotton dresses with a customs value of EUR 10,650, the duty would fall from EUR 1,022.40 (GSP 9.6%) to zero.
The condition that matters: where the fabric is made
The draft rule of origin for woven garments is stricter than the UK–India rule. Under the EU draft, the fabric must be woven (or knitted) in India or the EU. A garment sewn in India from imported fabric would not qualify for 0%. Under the UK agreement, a change of tariff heading plus a minimum Indian value content is enough.
For a buyer, this means:
- Garments made from Indian-woven cotton, viscose or silk fabric are the ones positioned to benefit.
- Garments sewn in India from fabric woven elsewhere would stay on the GSP or standard rate even after the agreement applies.
- Fabric origin should be documented now. When the agreement applies, the exporter will need to prove it.
Two dates to watch
- 1 January 2027: the EU’s renewed GSP regulation applies, with a fresh list of suspended product sections. If apparel from India were suspended, the gap between the standard 12% and the FTA’s 0% would matter even more.
- Entry into force of the FTA: not announced. We will update this guide and the calculators when the Council decision, the signature and the consent are published.
Check today’s rate
- Import duty on dresses from India to Germany (the EU rate applies in all 27 member states; VAT differs)
- France · Italy · Spain · the Netherlands · all countries
We manufacture and export garments from India. Talk to us about fabrics and origin documents for EU ranges.
Sources
- European Commission: EU–India trade agreement: status and texts
- Council of the EU: Proposal for a Council Decision on the signing of the EU–India Free Trade Agreement, COM(2026) 483
- EUR-Lex: Regulation (EU) 2025/1909 (GSP suspensions 2026–2028); Regulation (EU) 2026/1395 (GSP from 2027)
- Press (reported): The Tribune / ANI, 5 October 2026
- GOV.UK: UK–India CETA rules of origin (for the comparison)
Based on the draft texts published by the European Commission, read 7 October 2026. Rates verified on against the official tariffs. Draft texts can change before signature. This is not a customs ruling.
Developing a womenswear range? See how we work as a ladies garments manufacturer in India.
