FTA Likely to Double India’s Apparel and Textile Exports to the UK: ICRA Report
India’s exports of apparel and home textiles to the United Kingdom are expected to double over the next 5–6 years, thanks to a new Free Trade Agreement (FTA) that is likely to start in 2026, according to a recent report by ICRA.
At present, Indian textile products going to the UK have to pay import duties of 8% to 12%. However, once the FTA comes into effect, around 99% of goods, including textile items, will get duty-free (zero-duty) access. This will allow Indian exporters to compete on equal terms with countries like Bangladesh, Vietnam, and Pakistan, which already enjoy such benefits.
📊 UK’s Textile Market: Who Leads?
- China is currently the top textile exporter to the UK, holding 25% of the market.
- Bangladesh follows with a 22% share.
- Turkey and Pakistan have 8% and 6.8% shares respectively.
- India currently has a 6.6% share, with $1.4 billion worth of textile exports to the UK in 2024, making it the UK’s fifth-largest supplier of apparel and home textiles.
With the FTA in place, Indian textiles will become more competitive in price, and this is expected to help India increase its market share significantly.
📈 Growth Forecasts
According to the ICRA report:
- India is the UK’s 12th largest trading partner.
- The share of the UK in India’s total textile exports is projected to increase from the current 6.6% to about 11–12% by 2027.
- This means India’s textile exports to the UK could grow at an average rate of 11% per year (Compound Annual Growth Rate or CAGR).
- The growth is expected to be steady and sustainable over the next few years.
🤝 Bilateral Trade Deal Finalized
The FTA deal between India and the UK was finalized on May 6, 2025, after nearly three years of negotiations. It includes duty concessions or zero-duty access for several product categories, including textiles. This move is expected to increase trade volumes and earnings for Indian manufacturers.
📅 Latest Export Trends
Recent data from India’s Ministry of Commerce shows that India’s overall textile and apparel exports grew by 7.45% in April 2025 compared to April 2024. The major growth driver was the apparel segment, which recorded an impressive 14.43% year-on-year growth.
Rakesh Mehra, Chairman of the Confederation of Indian Textile Industry (CITI), noted, “The current growth of 14.43% in apparel exports seems to be mainly driven by increased shipments to the United States, following the announcement of reciprocal tariff measures by the US administration.”
🌍 Future Outlook
With the UK joining the list of countries where India will enjoy duty-free access, exporters are optimistic about future growth. The expected doubling of exports in the coming years highlights India’s rising strength in the global textile market.
As the FTA becomes operational and trade rules ease, Indian businesses, especially small and medium-sized manufacturers, may find new opportunities to grow in the UK market.
