The India-UK Free Trade Agreement (FTA) will significantly boost India’s garment exports, streamline trade, and create jobs, according to the Apparel Export Promotion Council (AEPC). Officially termed the Comprehensive Economic and Trade Agreement (CETA), the pact was inked in the presence of UK Prime Minister Keir Starmer.

AEPC Chairman Sudhir Sekhri hailed the agreement, stating, “Duty-free access to the UK market will give Indian apparel a competitive edge, streamlining customs and standards compliance.” The UK, a global fashion hub and the world’s fifth-largest garment importer, imported $19.7 billion in apparel in 2024, with India supplying $1.2 billion, ranking among the top four suppliers.

The FTA eliminates the 9.6% duty on most garment exports, enhancing India’s competitiveness in cotton-based products like t-shirts, ladies’ dresses, and babywear. However, India lags in winter wear and man-made fibre garments, areas Sekhri noted could see growth with increased investment. The deal is projected to add £25.5 billion to bilateral trade by 2040, fostering job creation and innovation in India’s $16 billion apparel export sector.

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Discussions on X highlight optimism among exporters, with some emphasizing the need to diversify into synthetic fabrics to capture the UK’s winter market. The FTA, signed by Commerce Minister Piyush Goyal and UK Business Secretary Jonathan Reynolds, positions India to strengthen its global apparel market share.

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