Indiauk Trade Deal To Boost Textile & Apparel Exports Through Duty-Free Market Access

(MENAFN- KNN India) New Delhi, July 25 (KNN) India's textile and apparel sector is poised for significant growth following the signing of the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom.

Under CETA, 99 percent of Indian exports to the UK will enjoy duty-free access, effectively covering the entire trade basket.

For India's textile and apparel industry-one of the country's largest employers and a key contributor to exports-this breakthrough is expected to lower costs, improve competitiveness, and open up new market segments in one of Europe's largest consumer economies.

The UK currently imposes a 9.6 percent duty on most garment imports and a 12 percent duty on home textiles, both of which will now be eliminated under the agreement.

Indian manufacturers, especially small and medium-sized enterprises (SMEs), are expected to benefit from streamlined customs procedures, reduced compliance burdens, and improved integration into UK supply chains.

According to the Confederation of Indian Textile Industry (CITI), the elimination of import duties will enable Indian exporters to compete on a level playing field with countries such as Bangladesh and Türkiye.

CITI Chairman Rakesh Mehra noted that the FTA removes the duty-related disadvantage that had previously hindered Indian exporters from expanding their market share in the UK.

"The free trade agreement not only eliminates tariff barriers but also provides Indian exporters an opportunity to scale up their global market share in sectors where the country already has comparative advantages. It aligns with India's broader export ambitions, including the goal of reaching USD 100 billion in textile and apparel exports by 2030," the CITI Chairman said.

Vijay Agarwal, Chairman, Cotton Textiles Export Promotion Council (TEXPROCIL), described the agreement as a 'momentous milestone' after three years of negotiations.

“With duty-free access, India has the potential to double its share in the UK home textiles market within the next three years,” he said, noting strong growth prospects for products such as bedsheets, curtains, and cotton fabrics.

A. Sakthivel, Vice-Chairman, Apparel Export Promotion Council (AEPC), called the agreement a 'game-changer' for the industry.“This FTA will offer competitive market access and increase the trust and reliability factor by simplifying customs procedures and ensuring mutual recognition of standards,” he said.

According to AEPC Chairman Sudhir Sekhri, the deal will enhance Indian garment exports and support job creation.

“The UK is a global fashion hub and the world's fifth-largest apparel importer. This agreement positions Indian exporters to tap deeper into that market, particularly for cotton-based garments such as t-shirts, dresses, and babywear,” he said.

Currently, India exports approximately USD 1.2 billion worth of garments to the UK annually, making it one of the top four suppliers.

While India remains competitive in cotton-based apparel, the deal is also expected to strengthen its position in value-added segments and facilitate new investments and joint ventures with UK-based partners.

(KNN Bureau)

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