In order to examine the potential brought about by the Comprehensive Economic and Trade Agreement (CETA) between India and the United Kingdom, the Department of Commerce, Ministry of Commerce and Industry, convened an industry interaction with stakeholders from the textile, leather and footwear sectors in New Delhi.
Union Minister of Commerce and Industry Piyush Goyal told the gathering in a statement that the deal is a game-changer for India’s leather, textile and footwear sectors. According to Goyal, the historic India-UK CETA has set up India’s textile industry for a notable increase in exports.
Sunil Barthwal, secretary of the Department of Commerce, underlined that removing tariffs and giving MSMEs more authority will encourage inclusive growth and create jobs. He continued by saying that it is anticipated that the deal will increase Indian manufacturers’ and craftsmen’ international recognition.
The agreement overcomes the tariff disadvantages (of up to 12%) that the Indian textiles sector experienced in the UK compared to several important competitor countries including Bangladesh, Cambodia and Pakistan and grants duty-free access to the UK market for Indian textile and apparel exports. Ready-made clothing, home textiles, carpets and handicrafts are among the industries that would profit from the zero-duty market access, which will also lay the stage for a significant increase in exports.
All of the key textile clusters, including Tirupur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi and Moradabad, will profit from the deal, which will also assist to increase demand for Indian textiles. It is anticipated that the CETA will benefit all parties involved in the textile value chain and increase the creation of jobs in this labour-intensive industry.
CETA removes the UK’s import taxes on Indian items, which presently range from 4.5% for leather footwear, 11.9% for non-leather footwear and 2% to 8% for leather goods. In contrast to rivals like Bangladesh, Cambodia and Vietnam, who have benefited from special access to the UK market, this levels the playing field for Indian exporters.
India’s leather and footwear exports to the UK are predicted to almost double as a result of the tariff removal, rising from US $ 494 million in 2024 to US $ 1 billion in three years. With a predicted spike in demand that is anticipated to create thousands of new employment, especially among MSMEs, craftsmen, women entrepreneurs and youth-led businesses, important manufacturing hubs throughout the nation stand to gain greatly.
The India-UK CETA gives Indian producers more pricing power and international visibility by enabling duty-free access and regulatory simplicity, particularly for premium leather and fashion goods that are in great demand in the UK.
Along with encouraging MSMEs to embrace digital tools, integrate with global value chains and increase their e-commerce presence, CETA also supports sustainable manufacturing techniques.
The Council for Leather Exports (CLE), Confederation of Indian Industry (CII), Confederation of Indian Footwear Industry (CIFI), Indian Footwear Components Manufacturers Association (IFCOMA), the Footwear Design and Development Institute (FDDI), Central Leather Research Institute (CLRI), Leather Sector Skill Council (LSSC), various Textile Export Promotion Councils, Industry Associations and textile exporters were among the industry and institutional invitees to the meeting as part of the stakeholder engagement. Senior representatives from the Department of Commerce attended the meeting to discuss opportunities and sectoral readiness resulting from the agreement, along with representatives from key government departments such as the Ministry of Textiles, Bureau of Indian Standards (BIS), Directorate General of Foreign Trade (DGFT), Department of Revenue and Department for Promotion of Industry and Internal Trade (DPIIT).
