India’s apparel and home textiles exports to the UK are on track to see a major boost, with trade volumes expected to double over the next 5–6 years. This surge is attributed to the recently concluded Free Trade Agreement (FTA) between the two nations, according to a report by credit rating agency ICRA.
Key Highlights :
- The India–UK FTA is projected to become operational in calendar year 2026, pending legal review.
- In CY2024, the UK imported $1.4 billion worth of apparel and home textiles from India.
- This accounted for a 6.6% share of the UK’s total textile imports.
- Currently, UK imposes 8–12% duty on apparel and home textiles from India.
- The FTA will eliminate tariffs on 99% of Indian goods, including textiles.
- To meet growing demand, new manufacturing capacities are expected to be added in 4–5 years
With zero tariffs and strategic capacity building, the FTA could unlock a new era of textile trade growth between India and the UK.