New Delhi, Jan. 28 -- India's textile and apparel sector is poised for a significant boost following the conclusion of a Free Trade Agreement (FTA) between India and the European Union, which will eliminate import duties on Indian textile exports to the bloc, according to a Jefferies equity research report.

The agreement is expected to provide a major boost to India's textile and apparel sector, which currently faces tariffs of up to 12% in the EU, compared with zero duties for competitors such as Pakistan, Bangladesh and Turkey. Similar benefits are expected for exports of chemicals, leather products and footwear.

EU imports nearly USD 125 billion worth of textiles and apparel annually, making it one of the world's largest markets for ...