Tuesday, 02 January 2024 12:17 GMT

India's Garment Exports To The UK Expected To Surge Post-FTA Implementation: AEPC


(MENAFN- KNN India) New Delhi, May 8 (KNN) The Apparel Export Promotion Council (AEPC) announced on Wednesday that the recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is expected to double India's ready-made garment exports to the UK within the next three years.

AEPC Chairman Sudhir Sekhri characterised the agreement as particularly significant given the challenging global trade environment, which has been adversely affected by demand contraction in major economies, ongoing conflicts in Ukraine and the Middle East, American reciprocal tariff measures, and tensions with China.

"This deal has come as a boon, removing the immediate tariff disadvantage of 9.6 percent and making us competitive in the UK market," Sekhri stated.

He also asserted, "Now, Made in India ready-made garments will be cheaper on UK shelves, and we will be on par with some of our major competitors who have enjoyed duty-free access to the UK market."

India currently holds the position of fourth largest supplier of garments to the UK, commanding a 6.1 percent share of Britain's total ready-made garment imports.

Indian apparel exports to the UK demonstrated positive momentum in 2024-25, growing by 7.8 percent to reach USD 1.4 billion.

The UK market for ready-made garments is currently dominated by China, followed by Bangladesh and Turkey.

Key products that the UK imports from India include cotton t-shirts, women's cotton dresses, and babies' cotton garments and accessories.

Sekhri emphasised that the complementary nature of the two economies, combined with cross-sector synergies, will facilitate rapid growth and expansion of the apparel business by providing Indian manufacturers with a competitive advantage over rival exporting nations.

(KNN Bureau)

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