India’s free trade agreement (FTA) with the United Kingdom is expected to significantly boost shipments of garments, home textiles, carpets, and handicrafts, with textile exports projected to rise by 30–45% by 2030, a Commerce Ministry official said on Tuesday.
Industry experts believe the pact offers a major opportunity for Indian exporters to tap into the UK market, which imports textiles worth US $ 27 billion annually, particularly at a time when US tariffs on Indian textiles are at record highs.
The UK is India’s third-largest export destination, accounting for 5.8% of textile exports in 2024. India’s total textile exports stood at US $ 37 billion, with the country ranking as the UK’s fourth-largest supplier, holding a 6.6% market share (US $ 1.79 billion) behind China (25.4%), Bangladesh (19.9%), and Turkiye (7.9%).
The Commerce Ministry official noted that India had previously faced a duty disadvantage compared to major competitors. With the Comprehensive Economic and Trade Agreement (CETA), Indian textile exports will now enter the UK duty-free from the agreement’s implementation, benefiting key sectors such as ready-made garments, home textiles, carpets, and handicrafts. This, the official said, removes tariff barriers and gives India a competitive edge over regional rivals like Bangladesh and China.
According to the official, the pact could potentially double India’s share of UK textile imports from 6% to around 12%, adding US $ 1.1–1.2 billion annually. In volume terms, exports could increase by 30–45% by 2030, translating into an additional US $ 500–800 million in value.
Meanwhile, the US has imposed a 25% tariff on Indian goods, including textiles, from 7th August, with an additional 25% set to take effect from 27th August, taking total import duties to 50%.
