India Aims to Double UK Textile Market Share with Zero-Tariff FTA

The India-UK Free Trade Agreement will come into force on July 15, 2026, allowing Indian textile and apparel exports to enter the UK without safeguard duties, as per the Moneycontrol news report. 

Existing tariffs of nearly 12% will be reduced to zero, improving India's price competitiveness in the British market. The agreement covers a range of textile products shipped from India. 

UK Remains an Important Export Market 

India exported textiles and apparel worth around $1.3 billion to the UK during FY25, according to government data. Ready-made garments contributed nearly two-thirds of the shipments, while cotton textiles, carpets and handicrafts were among the other major export categories.  

India currently accounts for 6.6% of the UK's textile imports, making it the country's fourth-largest supplier. 

Trade Volumes May Increase 

The UK Department for Business and Trade has estimated that imports from India could increase by around £2.9 billion after the agreement takes effect.  

Imports of clothing are projected to rise by £475 million, textiles by £175 million and footwear by £55 million. The estimates show higher sourcing from Indian manufacturers following the removal of duties. 

Exporters Prepare for Additional Orders 

As per the report, industry associations expect export business with the UK to rise by 10-15% in the initial phase of the agreement.  

Existing production capacity is considered sufficient to meet additional demand, although manufacturers may expand capacity if order volumes increase over time. Indian exporters have also stepped up discussions with several UK retailers over the past year. 

Read More: India’s Gold Imports Decline Sharply After Duty Hike, Fall to 25-30 Tonnes a Month! 

Conclusion 

The India-UK FTA is expected to lower export costs for Indian textile manufacturers and provide wider access to the UK market, with industry participants closely tracking its impact on trade volumes in the coming years. 

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