India Set To Double Market Share In UK's RMG Imports To 12%: Careedge Ratings

(MENAFN- KNN India) New Delhi, May 13 (KNN) India is expected to double its market share in the United Kingdom's ready-made garments (RMG) imports from 6 percent in 2024 to 12 percent in the near to medium term, according to a new analysis by CareEdge Ratings.

This growth represents an incremental annual export opportunity of approximately USD 1.1-1.2 billion for Indian manufacturers.

The projection follows the successful conclusion of an ambitious Free Trade Agreement (FTA) between India and the UK on May 6.

The Commerce Ministry has confirmed that the agreement will eliminate duties on 99 percent of Indian exports, creating significant opportunities for labour-intensive sectors in India.

The global textile and RMG trade reached approximately USD 525 billion in 2024, with major markets including the European Union, United States, United Kingdom, Japan, Canada, and South Korea collectively accounting for nearly 44 percent of global imports.

The UK stands among the top five RMG markets globally, with imports valued at around USD 20 billion in 2024. Currently, India exports approximately USD 1.2 billion of RMG to the UK out of its total RMG exports of USD 15-16 billion.

CareEdge Ratings described the India-UK FTA as a 'game changer' for India's RMG sector, creating a level playing field with key competing nations that already enjoy preferential access to the UK market.

Countries such as Bangladesh, Turkey, Cambodia, and Italy currently have duty-free access, while Vietnam and Pakistan benefit from lower to zero tariffs.

The analysis highlights that India now holds a clear 12 percent duty advantage over China, which currently maintains the largest market share in UK's RMG imports.

"China has lost its market share in the past few years, and it is expected to continue losing its share in the UK's RMG market due to its declining competitiveness, backed by rising labour costs and the 'China Plus One' sourcing strategy adopted by global apparel brands and retailers," noted the rating agency.

Socio-political uncertainties in Bangladesh may further benefit India as global apparel brands and retailers seek to diversify their sourcing strategies.

The expected recovery in overall RMG demand from the UK, moderating inflation and interest rates, combined with India's increased competitiveness following duty removal and favourable domestic policies such as the PM Mega Integrated Textile Region and Apparel (PM MITRA) park and the Production Linked Incentive (PLI) scheme, are anticipated to help the sector capitalise on these export opportunities.

(KNN Bureau)

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