EU FTA rules of origin for textiles typically require double transformation: yarn → fabric (first transformation) → garment (second transformation) must both occur in India (or cumulation zone) to qualify as Indian origin. This means: (1) buying fabric from China and making garments in India does NOT confer Indian origin for EU FTA purposes, (2) Indian manufacturers must use Indian (or EU-cumulated) yarn to qualify. Indian integrated textile manufacturers with spinning-to-garment operations are well-positioned for India-EU FTA.

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