TCF Post Report
A senior official from Decathlon stated that the imminent Free Trade Agreement (FTA) between the EU and India could significantly improve India’s competitiveness against prominent sourcing destinations such as Bangladesh and Vietnam.
Currently, Bangladesh is the EU’s second-largest apparel sourcing destination after China, while India ranks fourth (after Turkey) and Vietnam ranks fifth.
French retailer Decathlon, the largest sporting goods retailer in the world, sources outerwear and other clothing categories from Asian destinations, including China, Bangladesh, Vietnam, and India.
“Particularly in the European market, duty structures play a crucial role in sourcing decisions,” said Mr. Deepak Dsouza, South West Asia Production Director for Decathlon International. “The agreement is expected to strengthen India’s price competitiveness while further accelerating investments into value-added manufacturing and technical product development.”
Dsouza also noted that the proposed India–EU Free Trade Agreement would present a major opportunity for Indian manufacturing.
Recent Eurostat data shows that in the first two months of the current year, India’s apparel exports to the EU saw a decline of 7.13% in export value, amounting to €778 million. In terms of export volume, India faced a 1.61% decline, while its unit price was squeezed by 5.60%.
During the same period, Bangladesh experienced a 19.26% decline in export value, amounting to €2.88 billion, driven by an 11.14% decrease in volume and a 9.13% decrease in unit price.
Meanwhile, Vietnam recorded a mild decline of 2.06%, reaching €711.73 million in exports, despite a 6.56% increase in its unit price.
Overall, from January to February 2026, the EU’s apparel imports experienced a negative growth rate of 11.27%, totalling €13.83 billion.
