KANPUR, Jan. 29 -- The signing of the long-pending India-European Union (EU) free trade agreement (FTA) on Tuesday is set to significantly boost the city's exports, with industry estimates projecting a 20-22% increase in the coming years, exporters said. The agreement removes tariffs on leather and leather products, directly benefiting the city's largest export sector. Earlier, duties ranging from 4.5% to 17% had hurt price competitiveness in European markets. Exporters also expect increased demand for textiles, engineering goods and handicrafts. Exports from the city to the EU are currently estimated at around Rs.3,600 crore annually, making the bloc its single largest overseas market and accounting for nearly 44% of total exports. With the FTA in place, exporters expect business to expand across all 27 EU member countries, compared to trade earlier concentrated in about a dozen nations. Industry bodies said the agreement would help offset the impact of the 50% tariff imposed by the United States. "After the US, the EU is our biggest market. This agreement provides an alternative growth engine," said leather exporter Asad Iraqi. The city recorded exports worth Rs.10,401 crore in FY 2024-25, a new high. In the first six months of the current financial year, exports stood at Rs.4,287.25 crore, driven largely by leather and leather products, helping the city rise from fourth to third place in UP's export rankings. The Federation of Indian Export Organisations (FIEO) termed the India-EU FTA a strategic step in strengthening India's global trade footprint. Exporters said strong demand from Germany, Italy and France could push leather shipments up by as much as 27%. Former chairman of Council for Leather Exports Rajendra Kumar Jalan said the agreement could act as a catalyst for technological upgrade....