India plays as a crucial actor in the world manufacturing hub of textile where European Union is the biggest market for India’s textile and clothing export. As the single market begins to pronounce ethical credentials in its platform to build relation, India’s lack of transparency towards environment and ethical trade are being addressed upon reaching the new trade deal (FTA) since 2007 which went stagnant years after. This research aims to reveal that India shift to environmental-friendly textile policy is primarily profit driven by accommodating European standards of environment and social clauses.