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India's textile export to UK under FTA may offset US losses
The Business Guardian
|September 01, 2025
The loss incurred due to the imposition of reciprocal tariffs on Indian textile exports to the United States (US) may be offset by a surge in exports to the United Kingdom (UK), buoyed by the recently concluded India-UK Free Trade Agreement (FTA), said CareEdge Ratings in a report.
The report said that the ongoing FTA negotiations with the European Union are expected to open additional avenues, signaling a strategic realignment of India's textile trade landscape.
The India-UK FTA is a game changer for India's Readymade garments (RMG) and home textile sectors, creating a level-playing field vis-a-vis key competing nations for accessing the nearly USD 23 billion UK import market, the report added.
"India's textile export is expected to decline by 9-10 per cent in CY26. With expected loss of revenue and partial tariff absorption, PBILDT margin of Indian RMG and home-textile exporters is expected to decline by 300-500 bps," stated Akshay Morbiya, Assistant Director at CareEdge Ratings.
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