Stitching Success: India’s Garment Exports to UK Poised for Meteoric Rise After FTA Breakthrough

Image Source: DFU Publications

India's textile industry is set to witness a massive export surge, with the Apparel Export Promotion Council (AEPC) estimating that the new Free Trade Agreement (FTA) with the UK will double exports of ready-made garments to Britain in the next three years. The historic agreement comes at an opportune moment when global trade is being buffeted by geopolitical tensions and economic volatility.

Key Highlights:

Tariff Elimination Levels the Playing Field: The FTA instantly eliminates the 9.6% tariff disadvantage Indian clothing had in the UK, making "Made in India" clothing cheaper and competitive with competitors such as Bangladesh, China, and Turkey.
Surge in Exports Anticipated: India's clothing exports to the UK rose 7.8% to $1.4 billion in 2024–25. With the FTA in place, AEPC anticipates that this amount shall double by the year 2028, based on new access to markets as well as cost benefits.
Demanding Top Products: Primary exports are t-shirts made from cotton, vests, dresses made for women, and babies' wear, which will all benefit from duty-free entry into the UK market.
Industry-Wide Gains: The deal is expected to open new export avenues, spur investment, and create a more conducive business climate for Indian weavers, manufacturers, and exporters along the value chain.
International Context: The FTA comes in the backdrop of global trade disruptions, providing a welcome boost to Indian exporters and pushing Indian businesses more strongly into international value chains.
Long-Term Growth Prospects: AEPC members are confident that the FTA will spur high growth, innovation, and long-term growth in India's textile and apparel industry, empowering the stakeholders and generating employment.