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Opportunities and challenges for home textiles in India-UK FTA

FTAs should ideally be designed in a way that helps labour-intensive industries to benefit from it, considering that a lot of high-end and medium-end products already have lower tariffs. India’s trade agreement with the UK should be geared towards bringing down tariff rates for the Indian textile industry.

According to a think tank, GTRI, high-quality goods especially in the labour-intensive sector would benefit from the upcoming India-UK FTA. Analysing the probability of how much Indian textiles would gain from the trade would make it easier for Indian exporters to put forth their points during the upcoming India-UK FTA negotiations. Fibre2Fashion used the WITS SMART simulation tool to understand the repercussions of a zero per cent tariff rate on Indian textiles entering the UK. The analysis is based on data available for **** in the WITS database. This will act as a simple primer for Indian exporters to predict their overall gains if the UK agrees to remove the current tariff rate for India under the Developing Country Trading Scheme.