India-UK FTA: Readymade garment exports to more than double to $3.25 billion

India's ready-made garment (RMG) exports to the UK are expected to more than double from the current $1.45 billion to $3.25 billion shortly, thanks to the India-UK Free Trade Agreement (FTA).

A. Sakthivel, vice chairman of the Apparel Export Promotion Council (AEPC), said the agreement is a historic achievement that will redefine India’s apparel export landscape. “We foresee India’s RMG exports to the UK more than doubling in the near future—from the current $1.45 billion to $3.25 billion. Of this, knitwear exports alone are expected to surge from $0.8 billion to nearly $2 billion, accounting for around 70% of total RMG exports to the UK," he said.

The FTA allows zero or reduced tariffs on 99% of Indian exports to the UK, including key sectors like clothing, footwear, jewellery, gems, and foodstuffs such as frozen prawns. In textile items, the UK was charging an 8-12% tariff on most of the products. With the tariff advantages, Indian exporters will now enjoy a stronger edge over competitors from Bangladesh, Vietnam, and China in the UK market. The FTA will help enhance market access for exporters from apparel for manufacturing hubs such as Tiruppur, Surat, Ludhiana, Pune, Chennai, Gujarat, West Bengal, Assam, among others.

'"This FTA not only strengthens our bilateral ties but also empowers Indian exporters with fresh opportunities and global competitiveness. It will pave the way for large-scale employment, especially surge women employment, industry growth, and a brighter future for the Indian textile sector," says Sakthivel.

Vivek Tandon, founder of recycling specialist Revalyu Group, says the deal removes the historical 8–12% import tariff, creating 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% CAGR.

''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 toward eco-conscious fashion and strengthening India’s position in the circular economy,” said Tandon.