UK and European apparel brands, including Marks & Spencer, Primark and Next, have begun negotiations with Indian suppliers as free trade agreement (FTA) talks between India and the UK and between India and the European Union move closer to ratification. Buyers are increasing factory audits and supplier evaluations in key manufacturing hubs such as Tirupur in Tamil Nadu, signalling plans to initiate or expand sourcing from India.
Exporters said the heightened engagement is being driven by supply-chain uncertainties in Bangladesh and expectations of tariff reductions once the FTAs come into force. According to the Tiruppur Exporters Association, brands including Marks & Spencer, C&A, Primark, Mothercare, Next and Duns have started visiting the region to conduct technical audits, assess new factories and explore scaling up orders with existing suppliers. Exporters noted that brands already sourcing from India are actively seeking to increase procurement volumes.
Under the proposed India-UK FTA, tariffs on 99% of India’s exports to the UK would be eliminated. The agreement is expected to come into effect following ratification by the UK Parliament, which is anticipated within the next few months.
In 2024–25, India’s textile and apparel exports were valued at $37 billion, with the United States accounting for 28.5%, followed by the European Union at 19.6%. The UK was the fifth-largest destination, representing 5.4% of total exports.
Exporters said political uncertainty in Bangladesh has also prompted European buyers to reassess sourcing strategies. Industry representatives indicated that buyers such as C&A, which source significant volumes of denim and bottoms from Bangladesh, are evaluating the possibility of shifting part of their sourcing to India. Some UK buyers have also expressed interest in relocating production from Bangladesh to Indian suppliers.
Currently, higher import duties make Indian sourcing less competitive compared with Bangladesh. Bangladesh has benefited from duty-free access to the European market for nearly 25 years, while Indian apparel and textiles face duties of 12.5% and 9.6% respectively in both the EU and the UK. Implementation of the FTAs would remove these duties, placing India on a comparable footing with Bangladesh.
Despite long-established supply chains in Bangladesh, exporters said European buyers are increasingly focused on reducing concentration risk. Industry bodies also warned that India may need to expand manufacturing capacity to meet potential demand if geopolitical uncertainty in Bangladesh persists and the FTAs with the UK and EU are concluded.
