India’s textile industry has reacted positively to the signing of the Free Trade Agreement (FTA) with the UK during Prime Minister Narendra Modi’s visit to the region.
Reacting to the development, Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), stated that the signing of the landmark India-UK FTA represents a significant milestone in strengthening the strategic and economic partnership between the two countries. He noted that the agreement would usher in a new era for garment trade with the UK.
According to Sekhri, the deal is expected to enhance market access, stimulate investment and generate employment within the garment sector. He added that it would also create new opportunities for businesses and consumers in both India and the United Kingdom.
He further emphasised that the India-UK FTA would not only provide competitive market access for Indian apparel products in the UK but also strengthen trust and reliability through streamlined customs procedures and mutual recognition of standards. This, he noted, would significantly reduce compliance burdens for Indian apparel exporters. With duty-free access under the agreement, Sekhri expects Indian apparel exports to the UK to gain renewed momentum in the coming years.
Shiraz Askari, President, Apollo Fashion International Limited, a leading leather contract fashion manufacturer under the Apollo International Group, specialising in premium footwear, outerwear and accessories said that the India–UK FTA is a game-changer for the textile and apparel sector. With 99% of textile and apparel tariff lines now duty-free and UK import duties of up to 16% being phased out, Indian exporters are finally on equal footing in one of the world’s most design-driven and sustainability-conscious markets. This is set to boost demand for cotton garments, home textiles and value-added, artisan-led apparel, especially from hubs like Tirupur, Ludhiana and Surat. The agreement also raises the bar on expectations, UK buyers will look for quicker turnarounds, traceable supply chains and stronger alignment with UKCA and ESG standards. If the industry responds with agility and intent, a 30–40% surge in exports over the next few years is well within reach.
The UK is the world’s fifth-largest importer of garments and a centre for global fashion. India has always been a reliable partner for the UK because of its thriving garment industry. India became one of the top four suppliers of garments to the UK in 2024, exporting US $ 1.2 billion worth of garments.
The tariff on exports to the UK for the majority of clothing items is 9.6%. India is a major exporter of cotton-based clothing, including T-shirts, dresses and baby clothes, but it is not competitive in the winter and MMF clothing markets.
Clothing Manufacturers Association of India (CMAI) welcomes the newly signed FTA between India and UK, as it opens up a huge opportunity for the Export Sector. Of course, the 0% duty will only come into place around end of 2026 (after all necessary approvals and procedures are in place), yet, buyers will start their scouting and preliminary ground work fairly soon. UK having a large Indian diaspora, this will also give a boost to the traditional Domestic manufacturers of Indian Ethnic Apparel to venture into exports.
On the likely impact of duty-free imports coming into India, Santosh Katariya, President, CMAI, stated “Since imports of Apparel from UK are likely to be in the luxury and high-priced category, I am confident of the Indian Domestic Manufacturers’ ability to face the increased competition.”
Rahul Mehta, Chief Mentor, CMAI, added “Duty-free imports from UK will also raise the bar for Indian Brands and Retailers to up their quality, service, and Brand propositions – all of which will benefit the Indian Consumer.”
