Preferential Patterns: Are FTAs Helping or Hurting India's Textile Industry

The textile industry in India is one of the top 3 employment-generating industries. The apparel industry is ever-growing. With the ongoing US-China trade war, India has perceived this as a blessing in disguise and is preparing itself for the economic boom. With visions like Viksit Bharat, Make in India, and global collaborations taking place every passing day, our textile industry is at the most advantageous place. However, navigating the complexity of a VUCA (Volatile, Uncertain, Complex, and Ambiguous) environment, the fashion and textile sector has seen notable change over the past five years.

- By Ms. Mamatha G P K, Associate Professor, Pearl Academy

With an eye toward India's Viksit Bharat, this study investigates important issues, real-time data, and worldwide trends influencing the field. Emphasising sustainable practices, technical developments, and policy interventions to create resilient and creative ecosystems, it offers a solution-oriented framework to handle these dynamics.

Free trade agreements are a double-edged sword for India's textile industry-offering great potential for growth in global markets while also demanding structural upgrades and competitiveness. If negotiated and implemented with strategic foresight, FTAs can help Indian textiles reclaim their global dominance in both traditional and technical textile sectors.

Export Trends & FTA Influence (FY 2020–25)

FTA Highlights & Their Impact on Textiles

India–UK FTA (May 2025)

• Zero import duties on 99% of Indian textile/apparel items, replacing 8–12% tariff (AP News).

• UK textiles imports: China 25%, Bangladesh 22%, India ($1.2 bn) (The Financial Express).

• Forecast: UK exports to double to ~$3-3.2 bn by 2029 (11–13% CAGR).

• MSMEs empowered by fintech, enabling $1.1-1.2 bn textile export opportunity (Indian Textile Journal).

India–EFTA TEPA (Mar 2024)

• Duty-free access to 99.6% of exports; tariffs abolished even in Switzerland, benefitting textile makers (Fibre2Fashion).