With CETA signed, Indian garment industry expects a boost in exports

As of now, India’s neighbouring nations like Bangladesh, Pakistan, Cambodia and Myanmar have preferential access to UK’s market and their garments are treated duty free at ports. With the signing of the agreement, Indian textile and apparel products will be better able to compete with other countries like Bangladesh and China.

Indian textile and apparel items presently face 8-16 per cent duty on various products. Hence, industry stakeholders now want the CETA to be operational at the earliest possible date.

Sanjay K Jain, Chairman ICC National Textiles Committee and Managing Director, TT Ltd told Fibre2Fashion, “The trade deal will boost India’s market share from current 5-6 per cent to 10 per cent in the next two years. India and the UK are very close since long, and there is no language barrier. Therefore, the agreement will give great benefit to the Indian textile and garment industry.”

Jai Krishna Pathan, President of Mumbai Yarn Merchant Association said, “Due to the agreement, some amount of garment production is likely to shift to India from Bangladesh. However, upstream textile products like fabric and yarn may not see such huge benefit. But, if garment exports to the UK increases, fabric and yarn industry will get indirect support.”

RK Vij, emeritus President of the Textile Association of India (TAI) and Secretary General of Polyester and Apparel Industry Association (PTAIA) commented, “The long pending agreement is a new chapter for the entire value-added textile chain. Indian Garment and home textile industry may get boost in the UK’s market. The agreement is likely to boost investment under government schemes like PM MITRA and PLI scheme as the industry will plan for expansion to tap new opportunities. The arrangement should come into effect at earliest possible.”

Santosh Katariya, President, Clothing Manufacturers Association of India stated that the agreement opens up a significant opportunity for the export sector. Given the large Indian diaspora in the UK, it will also boost domestic manufacturers of Indian ethnic apparel to venture into exports. "Since imports of apparel from the UK are likely to be in the luxury and high-priced category, I am confident of the Indian domestic manufacturers’ ability to face the increased competition,” he said.

Dr. Vivek Tandon, Founder, revalyu Group said, “The India–UK Free Trade Agreement is a transformative milestone for India’s manufacturing and export landscape, ensuring zero-duty access on nearly all goods for both nations. Removal of duty will create a level playing field with major exporters like Bangladesh and Vietnam boosting bilateral trade by an expected £25?billion per annum by 2040. Among those most poised to benefit is India’s textile and garment industry, which is projected to double exports to the UK over the next five to six years, driven by an anticipated 11?per cent annual growth.”

For emerging sectors like recycled polyester and circular textiles, this deal opens a new frontier. UK brands increasingly demand sustainable fabrics, and with zero-duty access, Indian recycled PET yarn can now compete globally, fuelling a shift towards eco-conscious fashion and strengthening India’s position in the circular economy,” he added.

Meanwhile, the latest trade data indicates that UK’s apparel imports from India grew 10.35 per cent to reach $619.049 million during January-May 2025. India was the third largest sourcing nation after Bangladesh and China. Both nations have supplied around 23.03 per cent and 22.60 per cent garment (in value) in the UK’s total garment imports of $8.033 billion in the same period.

UK’s apparel imports from India grew at a faster pace than the total garment imports, which grew 7.49 per cent from the shipment of $7.473 billion in the corresponding period of the last year, according to sourcing intelligence tool TexPro.

ALCHEMPro News Desk (KUL)