Zero-tariff access may boost textile and apparel exports to the UK.
India’s textile industry expects to expand its presence in the UK market after the recently concluded India-UK free trade agreement removed tariffs on Indian textiles and apparel. The agreement is expected to bring duties down to zero from around 12 per cent, creating a more competitive export environment.
India is currently the fourth-largest textile exporter to the UK, with a 6.6 per cent market share in 2025. Ready-made garments account for around 66 per cent of exports, while other key categories include cotton textiles, handicrafts and carpets. India’s textile exports to the UK stood at $1.3 billion in 2024-25.
Industry associations believe the agreement will help Indian exporters compete more effectively with countries that already enjoyed preferential access to the UK market. The sector expects its market share to potentially double to around 12 per cent over the coming years, supported by improved landed pricing and stronger engagement with UK brands.
The UK Department for Business and Trade has estimated that the agreement could increase imports from India by around GBP 2.9 billion. Clothing imports are projected to rise by GBP 475 million, textiles by GBP 175 million and footwear by GBP 55 million.
ICRA expects India’s textile exports to the UK to grow at around 13 per cent CAGR over the next five years. Analysts also believe India’s low labour costs, cotton availability and integrated manufacturing base could benefit large textile players with strong quality standards.
The agreement is scheduled to take effect from 15 July 2026. Industry observers expect its benefits to begin from FY27, while possible trade agreements with the European Union and the United States could further support export growth.