Merchandise exports from Tamil Nadu in FY26: $59.3 billion
Of the total $59.3bn merchandise exports from TN in 2025–26, EU countries accounted for roughly $11.3bn (about 19%).
To capture it, TN needs stronger rules-of-origin support, carbon-compliance capabilities, global certification, specialised skills and incentives linked to value addition rather than capital deployed, said P Ravichandran, chairman, CII southern region. V N Shiva Shankar, president, SICCI, said the roadshows received encouraging response from German business community. A leading semiconductor firm has committed to explore investments in Chennai, starting off first with contract manufacturing and then moving on to setting up their own units,” he said.
FTAs give TN an opportunity to attract European investment and expand exports, but the bigger prize is moving from assembly to higher-value manufacturing, engineering and design. The upcoming trade deal has already enthused manufacturers. Recently, the Southern India Chamber of Commerce and Industry (SICCI) led a Tamil Nadu delegation for roadshows in Germany and Italy, showcasing opportunities in automotive, advanced manufacturing, semiconductors, green mobility and skill development. “A leading certification and standards group (second largest in Germany) came forward to establish a centre in Chennai to help SMEs leverage the FTA, especially with the carbon border adjustment mechanism (CBAM) and other documentation. The FTA’s services and digital-trade provisions, along with improved regulatory transparency, professional mobility and SME support, are also relevant to TN’s IT/ITeS, GCC, professional and financial-services ecosystem.
We propose to establish this in Dec 2026 as a part of the chamber’s exports facilitation,” he added. “Exporters should use this to adopt demand-driven, country-specific market strategies, and strengthen EU regulatory/compliance readiness. SICCI proposes to establish an India–EU FTA Desk in Chennai as a dedicated support mechanism for TN exporters, MSMEs, investors, and industry associations. The desk will provide a single point of reference for EU market intelligence, market access data, compliance norms, investment facilitation and policy advocacy, helping businesses translate the FTA into actionable opportunities.
Israr Ahmed, former vice-president of the Federation of Indian Export Organisations (FIEO) and MD of Farida Group, said, “Once in force, we expect footwear exports from TN to the EU to grow by at least 15%-20%.
Mohamed Athif, secretary, Seafood Exporters Association of India, Tamil Nadu Region, said the EU is one of the largest markets for frozen cephalopods such as squid, octopus and cuttlefish from Tamil Nadu. This growth would also help Indian exporters reduce their reliance on the US market, particularly given the ongoing risk of further US tariff increases. The upcoming India–EU FTA is expected to significantly boost exports. You Can Also Check: Gold Rate in Chennai | Silver Rate in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai | Chennai AQI | Weather in Chennai | Petrol Price in Chennai | Diesel Price in Chennai | CNG Price in Chennai | LPG Price in Chennai