India-UK Deal to Double Textile Exports

The recent India-UK Free Trade Agreement (FTA) is set to significantly boost India’s textile and apparel exports to the UK. The FTA, which eliminates tariffs on 99% of Indian textile products, including garments and home textiles, is expected to double trade between the two nations over the next five to six years. This agreement provides Indian exporters with a competitive edge, particularly in the UK market, by removing tariff disadvantages that have historically hindered trade growth.

In the 2024-25 period, India’s ready-made garment exports to the UK reached $1.4 billion, and with the FTA’s removal of the 9.6% tariff disadvantage, exports are projected to increase dramatically. The FTA is also expected to give a boost to India’s home textile exports, which were valued at $276 million in 2024, by reducing import duties and establishing long-term contracts with UK retailers. This could lead to an overall rise in exports, with Indian textile exports potentially increasing by $5 billion.

Additionally, the FTA is likely to stimulate investment in India’s textile sector, prompting factory expansions and capacity enhancements. Experts predict that the deal will not only strengthen India’s position as a global textile hub but also create new growth opportunities for the industry. The India-UK FTA, therefore, presents a significant opportunity for Indian textile and apparel businesses to expand their presence in the UK market and further enhance their global competitiveness.