Category: General
Country: India
Region: South Asia
Story by Moneycontrol News
24th July 2025
Reading time: 2 min read
Indian textile companies welcomed the 2025 free trade agreement (FTA) signed between India and UK as it eliminates tariffs on nearly all local textile and apparel exports, making Indian products more price competitive against exports from countries like China, Vietnam and Bangladesh.
Under the FTA, tariffs ranging from 8–12 percent on Indian clothing and home textiles exported to the UK will be eliminated. This move is expected to make Indian products more competitive compared to exports from countries like Bangladesh and Vietnam. Export hubs such as Tiruppur, Surat and Ludhiana are projected to see up to 40 percent growth over the next three years.
India is the second-largest textile exporter globally, with the sector employing over 45 million people. The UK, once a manufacturing powerhouse, now heavily imports finished textiles and garments, with India consistently ranking among its top five suppliers.
The new tariff means zero duty on shirts, trousers, dresses, and bed linen.
"The India–UK free trade agreement eliminates tariffs on Indian textile exports, enhancing the price competitiveness of Sanathan Textiles’ products, entering the UK market. The polyester filament yarn division stands to gain the most from this development, as the broader textile and apparel export segment is expected to benefit significantly, in line with the projected 30–45 percent growth in Indian textile exports to the UK by 2030," said Sammir Dattani, executive director, Sanathan Textiles Ltd.
Polyester filament yarns are used to create a variety of athletic wear, including sports bras, leggings, shorts, and t-shirts, thanks to their lightweight, breathable, and quick-drying characteristics.
The agreement also positively benefits the leather exports, which employs about 4.42 million people in the country. It is a prominent source of employment in the rural parts of India with women employed at about 30 percent in the sector.
"The India–UK FTA is a game-changer for the textile and apparel sector," said Shiraz Askari, President, Apollo Fashion International Ltd.
"With 99 percent of textile and apparel tariff lines now duty-free and UK import duties of up to 16 percent being phased out, Indian exporters are finally on equal footing in one of the world’s most design-driven and sustainability-conscious markets. This is set to boost demand for cotton garments, home textiles, and value-added, artisan-led apparel, especially from hubs like Tiruppur, Ludhiana, and Surat. The agreement also raises the bar on expectations, UK buyers will look for quicker turnarounds, traceable supply chains, and stronger alignment with UKCA and ESG standards," Askari added.
Courtesy: msn.com
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