The free trade agreement between India and the European Union will reduce Uttar Pradesh’s dependence on the US for exports. This agreement will facilitate access for Uttar Pradesh’s products to the large European Union market across 27 countries.
This agreement will be particularly effective in boosting the export of leather, footwear, and products under the One District One Product (ODOP) scheme. Following implementation, raw materials imported from European countries will be exempt from taxes, reducing production costs and enabling products to be sold at lower prices in the market.
Uttar Pradesh exported products worth ₹1.86 lakh crore in 2024-25. The largest share, 19 percent, was exported to the US. Following the US imposition of a 50 per cent additional tariff on Indian products, the free trade agreement with the European Union has further eased access for Uttar Pradesh’s products to markets in 27 European Union member states.
In 2024-25, Uttar Pradesh exported products worth ₹53,000 crore to European Union countries. Of this, ₹42,400 crore in exports went to Germany, Austria, France, Spain, Italy, and the Netherlands, while ₹10,600 crore went to the other 21 European Union countries.
After the free trade agreement, the large market of other European Union countries, including Denmark, Poland, Bulgaria, Greece, Hungary, Ireland, Norway, Romania, Portugal, Kazakhstan, Lithuania, Turkey, Azerbaijan, Finland, and Sweden, will present a significant opportunity for Uttar Pradesh.
According to Puran Dabar, Regional Chairman of the Footwear and Leather Industry Development Council, this agreement will greatly benefit labour-intensive industries, including ODOP products, carpets, and leather.
The agreement will be a boon to the leather and footwear industry.
Asad Kamal Iraqi, Regional Chairman of the Council for Leather Exports, says that the free trade agreement will be a boon for the leather and footwear export industry. The chemicals used in the leather industry are imported from European countries.
Following the agreement, there will be no duty on chemical imports. This will reduce costs in leather and shoe manufacturing. Shoe exporters from Uttar Pradesh currently export shoes to the European market at prices ranging from $15 to $20. This agreement will also benefit European traders and shoe manufacturers, who will have their products manufactured in Uttar Pradesh due to lower production costs.
