New Delhi, May 19
India's apparel and home textiles exports to the UK are expected to double from the current levels in the next 5-6 years, with the bilateral free trade agreement (FTA) scheduled to become operational in calendar year 2026, according to an ICRA report.
Currently, Indian textile exports to the UK face 8-12 per cent duties, but with 99 per cent of goods, including textiles, gaining zero-duty access under the FTA, India will achieve parity with competitors like Bangladesh, Vietnam and Pakistan, the report states.
China leads UK textile imports with a 25 per cent market share, closely followed by Bangladesh, which has a 22 per cent share. Turkey and Pakistan, with 8 per cent and 6.8 per cent share respectively, are the other major exporters. The FTA will enable India’s textile exports to become more competitive in the UK, leading to an increase in market share.
India is currently the 12th largest trading partner of the UK and ranks fifth in apparel and home textiles imports, with $1.4 billion worth of exports in 2024, which constitutes a 6.6 per cent share of the UK’s textile imports.
While the US and EU remain dominant markets with a 61 per cent share in 2024, the UK’s share is expected to rise to 11-12 per cent by 2027, reflecting an 11 per cent compound annual rate of growth (CAGR).
The bilateral trade deal, finalised on May 6, after three years of negotiations, will provide concessional or zero-duty access on select goods, boosting trade volumes and earnings.