INDIA-UK FTA BILATERAL TRADE TEXTILE SECTOR APPAREL EXPORTS TARIFF ELIMINATION COMPETITIVENESS CMAI SANTOSH KATARIYA CTA APPARELS DR. MUKESH KANSAL DOUBLE CONTRIBUTION CONVENTION SUSTAINABILITY MARKET ACCESS TECHNOLOGY EXCHANGE SUPPLY CHAINS NATIONAL
NEW DELHI, INDIA
By IFAB MEDIA - NEWS BUREAU - May 7, 2025 | 432 15 minutes read
The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom marks a significant milestone in bilateral trade relations, particularly for India's textile and apparel sector. The agreement eliminates tariffs on 99% of Indian exports to the UK, providing a substantial boost to the competitiveness of Indian textiles and garments in the British market.
Santosh Katariya, President of the Clothing Manufacturers Association of India (CMAI), highlighted the strategic importance of the UK market for Indian exporters. He noted that, in light of recent US tariff announcements, diversifying export destinations has become imperative. The FTA offers Indian knitted and woven apparel a significant opportunity to establish a stronger presence in the UK. By focusing on sustainability, quality, and digital marketing, Indian brands can not only increase exports but also offer UK consumers products at more competitive prices.
Dr. Mukesh Kansal, Chairman of CTA Apparels, expressed strong support for the FTA and the accompanying Double Contribution Convention. He described these agreements as mutually beneficial, reducing tariff barriers, encouraging technology exchange, and enhancing market access. Dr. Kansal emphasized that the UK has long been a valued partner, and this framework will significantly boost bilateral trade, foster innovation, and create more sustainable and competitive supply chains. He looks forward to contributing to this new era of Indo-British textile cooperation.
The FTA is expected to nearly double India's textile and apparel exports to the UK by 2030. This growth will be led by garments, followed by home and technical textiles. The agreement also opens doors for deeper trade, innovation, and investment across both nations' textile ecosystems.
In addition to tariff eliminations, the FTA includes provisions for mutual recognition of standards and streamlined customs procedures, minimizing non-tariff barriers. These measures will lower compliance costs and reduce delivery delays, especially benefiting small and medium-sized enterprises (SMEs) in the fashion sector. The result is near free trade in textiles between the two countries, subject to rules-of-origin compliance.
The agreement is poised to catalyze fresh investment across the textile value chain, including factory expansions and capacity upgrades, to meet rising demand from the UK market. This development aligns with India's broader objective of doubling bilateral trade with the UK by the end of the decade.
Overall, the India–UK FTA represents a significant opportunity for the Indian textile and apparel industry to expand its global footprint, enhance competitiveness, and foster sustainable growth in a key international market.