India, Jan. 23 -- The European Union has suspended export benefits to sectors such as textiles under a preferential scheme for some countries, including India, from January 1, a move that is expected to impact the country's shipment to the 27-nation bloc, even as the two sides are finalising a trade agreement, think tank GTRI said on Thursday.From January 1, 2026, India faces a "major setback" in the EU market, as 87 per cent of its exports begin paying higher import tariffs following the European Union's (EU) suspension of GSP (Generalised Scheme of Preferences) benefits, the Global Trade Research Initiative (GTRI) said.

Only about 13 per cent of exports, including agriculture and leather, retain the benefits under this scheme, it said....