Indian textile industry leaders hail UK FTA as game-changer

Fibre2Fashion

08-05-2025

Indian industry leaders are closely examining how the Free Trade Agreement (FTA) between India and the United Kingdom could present a major opportunity for them. From price dynamics to product profiles and regulatory requirements to trade facilitation, the FTA's provisions could potentially quadruple Indian textile and apparel exports to $5 billion.
Kishan Daga, founder anchor of consulting service provider Concepts N Strategies , explained that if a yoga legging is priced at £10 (~$13.28, FOB), it currently costs £11.20 in the UK market after adding a 12 per cent import duty under the pre-FTA regime. However, after the FTA, it would cost £10 due to zero duty. This price drop could help Indian exporters win more orders or offer better margins to UK buyers.
Daga said that UK buyers look for moisture-wicking, anti-odour, stretchable, and sustainable materials in activewear. Therefore, Indian manufacturers can focus on technical fabrics and performance wear. They need to invest in or collaborate with suppliers offering polyester-spandex blends, recycled PET fabrics, and anti-microbial treatments. Post-FTA, Indian suppliers will benefit not only from zero duty but also improved trade facilitation. Most Indian products are already compliant with UK and EU regulatory standards.
Indian textile leaders see the Indiaâ€'UK FTA as a game-changer, potentially quadrupling exports to $5 billion. Zero-duty access will make Indian products, especially technical fabrics, denim and casualwear, more competitive in the UK. Industry voices highlight improved margins, compliance readiness, and enhanced market share. The FTA is said to pave the way for broader global trade expansion.
Suketu Shah, CEO, Vishal Fabrics Ltd, stated, 'The conclusion of the FTA brings an exciting new phase for India's textile industry, especially in sectors like denim and apparel. The agreement ensures that 99 per cent of Indian textile exports, including garments and fabrics, will now benefit from duty-free access to the UK market. Currently, it imposes import duties of 10-12 per cent. This move is a substantial step toward improving the global competitiveness of Indian manufacturers like us who specialize in high-quality denim.'
'By eliminating these tariffs, Indian textile products, including denim and casual wear, will become more cost-competitive in the UK, allowing brands to strengthen their foothold in one of their largest export markets. This will help reduce production costs and enhance pricing flexibility for manufacturers, positioning them to capture a larger share of the UK market. The removal of duties is expected to increase the demand for Indian textiles, driving an estimated $5 billion boost in exports across the sector,' he further said.
This agreement is in sync with the larger objective of positioning India as a global leader in the textile industry, further opening up international markets and enabling manufacturers to stay competitive. By capitalising on this shift, brands can drive sustainable growth and contribute to India's thriving textile sector, Shah added.
RR Desai, plant head of Chiripal Industries Pvt Ltd , said, 'The trade deal will be great for India's textile industries as at this juncture we have to pay 12 per cent duty for the Indian made textile while Bangladesh is having zero duty access. So, once the treaty is implemented in the true sense, Indian textiles will have a competitive advantage against Bangladesh. Our trade with UK as of now is approximately $1.25 billion which can be further increased by $1 billion. But the real boost will come if India cracks an FTA with the US.'
Vikash Agarwal, director, Rupa and Company Ltd, said, 'For brands like ours, this agreement means an opportunity to expand our presence further in the UK market, which is one of the largest export destinations for Indian textiles. The removal of import duties will not only enhance pricing flexibility but also make Indian products more attractive to UK consumers. At Rupa, we are known for our diverse product offerings, and this tariff removal offers a significant strategic advantage.'
He added that the FTA marks a major milestone for India's textile sector, opening new avenues for growth and competitiveness. 'Our nation's textile exports to the UK have long been a central component of the industry's success, and this agreement will further strengthen that trade relationship. It could drive up Indian textile exports by an estimated $5 billion, giving brands the chance to increase their market share.'
'UK is one of the largest apparel importers, sourcing nearly $19–20 billion worth annually. The FTA eliminates the tariffs of up to 12–16 per cent levied on Indian textiles, garments, footwear, and carpets, instantly boosting our industry's competitiveness and export potential,' said Rajeev Gupta, joint managing director, RSWM Ltd .
Gupta noted that the agreement is expected to lead to a significant rise in trade volumes, with nearly 99 per cent of Indian exports to the UK becoming duty-free. 'This is especially significant for India's labour-intensive sectors, promising substantial job creation and growth. At RSWM Ltd, we see this as a golden opportunity to deepen our footprint in the UK market, strengthen supply chain linkages, and scale up value-added offerings,' he added.
Gupta also highlighted the reciprocal benefits of the FTA. 'Reduced tariffs on UK-origin technical textiles and high-end fabrics will bring advanced materials into India, further enriching our domestic capabilities. This agreement marks a new era of mutual growth, innovation, and economic synergy between India and the UK.'
Fibre2Fashion News Desk (KUL)