India–UK FTA: Textile & apparel industry expects major gains

India–UK FTA: Textile & apparel industry expects major gains



Indian textile and garment companies, along with industry organisations, have high expectations from the proposed Free Trade Agreement (FTA). Unlike FTAs with other countries, this trade deal is expected to boost India’s penetration in the UK market. Company heads and industry leaders have expressed confidence that the agreement will help them expand their businesses at a time when the sector is grappling with uncertainty due to the US’ reciprocal tariffs and consistently weak demand from export markets.

Dr S K Sundararaman, chairman, The Southern India Mills’ Association (SIMA), lauded the Union Government for concluding the historic trade agreement with the UK. He stated that the deal provides a much-needed relief to the Indian textile industry, which is currently struggling with the slowdown in US exports caused by steep and uncertain tariff hikes. He noted that home textile exports—especially kitchen linen from clusters such as Karur—have been at a disadvantage due to tariffs when compared with countries like Pakistan. He expressed optimism that the sector could now double its exports to the UK.

Indian textile and garment leaders have welcomed the India–UK FTA, anticipating significant benefits amid ongoing export challenges.
The zero-duty access is expected to boost exports—particularly home textiles and apparel—and attract major investments.
Industry heads foresee stronger UK market penetration, a level playing field against global competitors, and support for government schemes.

He further added that with the UK being the second-largest market for ready-made garments, zero-duty access will drive substantial investments across the textile value chain. This will bolster the success of initiatives such as the seven PM MITRA Parks, the PLI scheme, the National Technical Textiles Mission (NTTM), and various State and Central Government textile-related schemes. Dr Sundararaman stated that India would be able to utilise 20 to 30 per cent of its surplus production capacity across the value chain and capitalise on the export opportunities created by the India-UK FTA in a short span of time.

Santosh Katariya, president of the Clothing Manufacturers Association of India (CMAI), said, “UK is one of the most lucrative and growing markets for Indian textile and apparel exporters. Post the latest US tariff announcement, there was a strong need to diversify textile exports and with this FTA agreement, India’s knitted and woven apparel can now gain substantial foothold in the UK market. By emphasising on sustainability, quality and digital marketing, not only our exports but Indian brands will also get an opportunity to stand out with reduced prices for UK consumers.”

R Sabhari Girish, chief sustainability officer, Sulochana Cotton Spinning Mills, commented, “India-UK FTA would benefit apparel manufacturers extensively. Unlike any other destinations like Japan or Australia where we have FTA benefits and could not make much use of it, with UK we have previous track of business with major high street retailers. India being a country which has indigenous raw materials will have an advantage over its peers, where most of them depend on another country for the raw materials.”

“I strongly believe business with brands like Primark, Next, M&S, Tesco, Sainsbury’s will grow in multifold. We were losing the business to our competitors with a thin margin. Even after considering the earlier GSP benefits, we will be able to get at least 9 per cent benefits from pre-FTA tariffs, which is really huge. This would create a level playing field for India to compete with the nation’s which are already enjoying the zero-duty status. India-UK FTA would benefit both the countries and would be a permanent agreement unlike a concession being given as a developing nation. We can expect the business to double, especially in clothing from India within next year,” Girish added.

Ashok Kumar Malhotra, mission director of the National Technical Textiles Mission (NTTM), said, “The proposed FTA between India and the United Kingdom is expected to open new avenues for the Indian textile industry, with particular benefits for the technical textiles sector. Several high-potential segments stand to gain from improved market access, reduced tariffs, and increased collaboration opportunities.”

Dr. Oliver Prill, CEO, Tide stated, “We warmly welcome the new trade agreement between the UK and India, which is a major step forward for businesses and entrepreneurs. As a UK fintech with a growing presence in India, we work daily to support the dynamism and potential of this market. India is going from strength to strength as a powerhouse of innovation and entrepreneurship. Building on deep cultural ties, this agreement opens new doors for SMEs in both nations to expand, collaborate, and access fresh markets. With over one million members across the UK and India, we’re entirely committed to helping small businesses make the most of this milestone.”

Fibre2Fashion News Desk (KUL)



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