India-UK FTA: How Will The Indian Textile Industry Benefit From The Deal?

The India-UK Free Trade Agreement (FTA) assures favourable market conditions for the Indian Textile Industry through reduced tariffs on Indian textile products, opening its span to the broader and commercial UK market.

The Government of the UK reported an expected acceleration of trade - £25.5 billion between the two countries.

Significance of the UK Market

Santosh Katariya, President of the Clothing Manufacturers Association of India (CMAI) said to ANI that the UK provided a promising and expanding market for Indian textile including clothing and footwear. 

With the collapse of trade relations with the US amidst the tariff debacle, a need to diversify export destinations has been brought to attention.

“Post the latest US tariff announcement, there was a strong need to diversify textile exports and with this FTA agreement, India’s knitted and woven apparel can now gain a substantial foothold in the UK market”, Katariya said.

Industry experts stated that slashing off the taxes is expected to increase demand through increased export volumes, encourage investment and increase business competitiveness for textile industry producers and stakeholders. 

A. Sakthivel, Vice Chairman of the Apparel Export Promotion Council (APEC) said to ANI, “The India-UK FTA is expected to pave the way for long-term growth, attract investment, and create a more favorable business environment for textile stakeholders in both countries.”

Read More: UK-India FTA: Good News For These Sectors?

A New Beginning

The FTA deal has led to optimistic sentiments in India's Textile Industry regarding the long-term expected benefits in terms of access, regulations, innovation, global competitiveness, global branding, trade and employment.

(With Inputs from ANI)