India’s textile and apparel exporters expect the India-UK Comprehensive Economic and Trade Agreement (CETA) to create fresh growth opportunities, with industry players projecting double-digit growth in export volumes and India’s share of the UK textile market rising threefold to 10-15% over time.
The clarity on the implementation of the trade pact comes at a time when stability is expected to return to West Asia, a key destination and transit route for Indian textile exports, strengthening the industry’s export outlook.
“With the India–UK FTA creating a level playing field and buyers diversifying sourcing, India is well positioned to gain share. We expect double-digit growth in the near term and see potential for India’s UK market share to rise to 10–15% over time,” said Prabhu Damodaran, convenor and secretary of the Indian Texpreneurs Federation (ITF).
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India exported nearly $1.8 billion worth of apparel and home textiles to the UK in FY26, accounting for around 5% of the market. India and the UK on Thursday announced that the CETA will come into force on July 15. The agreement provides zero-duty access on 99% of India’s exports to the UK, covering nearly 100% of trade value across product categories ranging from processed foods and marine products to auto components. Tariffs of up to 12% on textiles and clothing and up to 16% on leather and footwear products will be eliminated.
The UK Department for Business and Trade estimates that the FTA will increase imports from India by about £2.9 billion. Imports of clothing are projected to rise by £475 million (45%), textiles by £175 million (40%), and footwear by £55 million (30%).
Leveling the Playing Field
Ashwin Chandran, chairman of the Confederation of Indian Textile Industry (CITI), said Indian textile and apparel exporters had until now faced a duty disadvantage compared with competitors such as Bangladesh in the UK market. “The India-UK CETA will change that, providing us with a level-playing field so that our products can find more willing buyers as they can now be priced more attractively relative to competition.”
Chandran said the increased possibility of stability returning to West Asia following the US-Iran deal, coupled with clarity on the implementation date of the India-UK CETA, would help textile and apparel companies in business planning and negotiations with existing and prospective buyers.
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Brokerage firm ICICI Securities said the FTA would place India on par with Bangladesh and Vietnam, while providing a competitive advantage over several other major exporting nations. India currently faces 12% tariffs on textile exports to both the UK and the EU, which will fall to zero upon implementation of the respective trade agreements.
“India’s low labour costs, abundant cotton availability, and recent removal of customs duty on cotton imports further strengthen its cost competitiveness,” the brokerage said.
Buyer Due Diligence
According to ICICI Securities, large integrated textile players with strong quality standards are expected to be among the key beneficiaries. Several UK and EU apparel and home textile buyers have already initiated due diligence of Indian manufacturing facilities ahead of shifting orders after the FTA comes into effect.
“Benefits from the UK FTA are likely to start accruing from FY27, while the impact of the EU FTA should be visible from FY28,” it said.
TOPICStextile industryThis article was first uploaded on June nineteen, twenty twenty-six, at forty-five minutes past five in the evening. © The Indian Express (P) Ltd