Apparel exports to UK set to grow as India-UK trade deal eliminates 9.6% tariffs

The India-UK Free Trade Agreement (FTA) has come at the right time as readymade garment (RMG) exports were facing demand contraction in key economies, Indian apparel exporters say. India is the 4th largest supplier of garment with 6.1% share of the total RMG import of UK. The RMG exports to the UK from India grew by 7.8% in 2024-25 compared to 2023-24.

“This landmark free trade agreement between India and the UK is expected to boost RMG exports and help in the employment generation. Against the backdrop of demand contraction in major economies, Russia-Ukraine conflict, Israel-Hamas war, American reciprocal tariff and Chinese belligerence, there was uncertainty and disruption impacting the global trade adversely,” Sudhir Sekhri, chairman, Apparel Export Promotion Council (AEPC) said, adding that the deal has come as a boon immediately removing the tariff disadvantage of 9.6% and making Indian exports competitive in the UK market. “Now, the Made in India RMG will be cheaper on UK shelves and we will be at par with some of our major competitors who enjoyed duty-free access in the UK market,” Sekhri said.

UK’s annual import of RMG is approximately $ 1.4 billion. Sekhri said that with this deal in place, India is all poised to double the RMG exports to the UK in the next three years.

China has remained the top supplier of RMG to the UK with 25.4% share in 2024. Bangladesh and Turkey have a share of 19.9% and 7.9 %, respectively. The top products imported by the UK from India includes T-shirts; singlets and other vests of cotton; knitted or crocheted garments; women's or girls' dresses of cotton; babies' garments and clothing accessories of cotton, knitted or crocheted.

According to AEPC chairman, the huge opportunities offered by this deal coupled with the complementary nature of two economies and synergy across sectors will help in the rapid growth and expansion of apparel business by providing competitive edge over competing countries.