Apparel makers see $1-bn gains

THE LANDMARK INDIA-UK free trade agreement (FTA) will significantly enhance the export competitiveness of India's labour-intensive textile and apparel sectors, unlocking additional export opportunities worth $1 billion to the UK, according to industry experts.

- RAGHAV AGGARWAL & NARAYANAN V

The FTA could reduce duties on textiles and garments exported to the UK by 8-12%. At present, made-ups like home textiles face an 8% import duty in the UK while woven and knitted garments including baby garments, T-shirts, women apparel as well as processed fabrics attract a 12% duty.

The new tariff structure has placed India on par with Bangladesh, which hitherto enjoyed zero-duty access due to its Least Developed Country (LDC) status.

The FTA has also given India's apparel exporters a 12% edge over China's tariffs.

According to industry insiders, India's exports to the UK in 2024 included $655 million worth of knitted apparel such as T-shirts, jogging shorts, and leggings, while woven apparel like shirts, trousers, and dresses accounted for $754 million.