25-07-2025
UK- India CETA to bring more export orders to Coimbatore industries
The engineering, food, textile, and garment industries in Coimbatore and nearby areas will see huge export potential because of the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, according to industry associations.
Rajesh Duraiswamy, chairman of CII Coimbatore, said the India-UK comprehensive trade agreement is a transformative opportunity for Indian exporters, especially for the vibrant industrial eco system of Coimbatore.
'This agreement eliminates steep tariffs, ranging from 8% to 16% and up to 70% for processed foods, granting immediate duty-free access to the UK, one of the world's most lucrative markets. For Coimbatore's core sectors such as textiles, engineering goods, pumps and machinery, agro-products and IT services, the benefits are both immediate and far-reaching,' he said.
The agro and food processing sector stands to benefit enormously, as products such as coconut and coir, previously facing duties as high as 70%, will now enter the UK at zero tariffs, opening new avenues for local producers.
According to S.K. Sundararaman, chairman of the Southern India Mills' Association, India is lagging in garment exports mainly because of tariff barriers. Indian textile goods attract 4% to 36% duties in different markets, while several competing countries, including, Bangladesh, Vietnam, Sri Lanka, Pakistan have duty free access. The CETA with the UK will bring tremendous opportunities to Tirupur and Karur that are exporting clusters. Orders for cotton knitted garments and kitchen linen are on an upward trend, strengthened by long-term business commitments, following the announcement of the conclusion of India-UK FTA negotiations in May, he said.
The Openend Spinning Mills Association has said that products made from openend mill yarn will see a surge in demand in the UK market, thus giving more orders to the mills here.
Chairman of the Confederation of Indian Textile Industry (CITI) Rakesh Mehra said Indian exporters will enjoy a more level-playing field vis-à-vis their peers from other countries when it comes to the UK market. This will enable the exporters to improve their market share not only in the top 20 product categories but across the broader textile and apparel segment.
India is the fourth largest supplier of textile and apparel products to the UK with almost 6.6% share in the UK's total textile and apparel imports. In 2024, the UK imported textile and apparel products worth about $27 billion, with apparel and made-up constituting 83% of the total, he said.
Better market access for Indian exporters will start a new innings across the entire textile value chain, said R.K. Vij, president of the Polyester Textile Apparel Industry Association.
