FTA likely to double India’s apparel, textile exports to UK: Report

New Delhi: India’s apparel and home textiles exports to the UK are expected to double from the current levels in the next 5-6 years, with the bilateral free trade agreement (FTA) scheduled to become operational in calendar year 2026, according to an ICRA report.

Currently, Indian textile exports to the UK face 8-12 per cent duties, but with 99 per cent of goods, including textiles, gaining zero-duty access under the FTA, India will achieve parity with competitors like Bangladesh, Vietnam and Pakistan, the report states.

China leads UK textile imports with a 25 per cent market share, closely followed by Bangladesh, which has a 22 per cent share. Turkey and Pakistan, with 8 per cent and 6.8 per cent share respectively, are the other major exporters. The FTA will enable India’s textile exports to become more competitive in the UK, leading to an increase in market share.

India is currently the 12th largest trading partner of the UK and ranks fifth in apparel and home textiles imports, with $1.4 billion worth of exports in 2024, which constitutes a 6.6 per cent share of the UK’s textile imports.

While the US and EU remain dominant markets with a 61 per cent share in 2024, the UK’s share is expected to rise to 11-12 per cent by 2027, reflecting an 11 per cent compound annual rate of growth (CAGR).

The bilateral trade deal, finalised on May 6, after three years of negotiations, will provide concessional or zero-duty access on select goods, boosting trade volumes and earnings.

India’s Textile and Apparel (T&A) exports have continued their upward trajectory, recording a growth of 7.45 per cent in April 2025 compared to the same month of the previous year. This positive trend was primarily driven by the strong performance of the apparel segment, which registered a robust 14.43 per cent growth year-on-year, an analysis of the data released by the Ministry of Commerce showed.

“The current growth of 14.43 per cent in apparel exports seems to be mainly driven by increased shipments to the United States, following the announcement of reciprocal tariff measures by the US administration,” Confederation of Indian Textile Industry (CITI) chairman Rakesh Mehra said.

IANS