The favourable outcomes of the recently concluded FTAs with Mauritius and Australia set a promising precedent for negotiations with the UK.
Indian garment exporters are hopeful that a potential free trade agreement (FTA) with the United Kingdom might be the key to revitalising their fortunes. This optimism stems from the consecutive decline in the country’s textile and apparel exports over the past two years.
The recent successful FTAs with Mauritius and Australia, resulting in a notable increase in readymade garment exports by 16.8 per cent and 5.7 per cent, respectively, in the initial eight months of the current fiscal year, have further fuelled this hope.
Chairman of the Apparel Export Promotion Council (AEPC), Sudhir Sekhri, expressed confidence regarding a possible agreement with the UK, which currently contributes 8 per cent to India’s apparel exports. He remarked that the favourable outcomes of the recently concluded FTAs with Mauritius and Australia set a promising precedent for negotiations with the UK.
The decline in India’s textile and apparel exports by 3.24 per cent in 2023-2024 and 16.3 per cent in 2021-2022 compared to preceding years has prompted the AEPC to devise a comprehensive strategy to address this downturn and achieve the ambitious goal of USD 40 billion in garment exports by 2030.
This strategy involves participation in 17 international trade fairs worldwide, with a particular focus on emerging markets like Saudi Arabia, Poland, Mexico, and South Africa. Additionally, the council plans to organise the second edition of ‘Bharat Tex,’ an exhibition showcasing Indian textile and garment capabilities, to enhance outreach to potential buyers.
Rohit Kansal, Additional Secretary at the Ministry of Textiles, emphasised the importance of closer collaboration between manufacturers and brands, stating that stronger engagement would foster trust and ensure adherence to international standards.
Shubhra, a Trade Adviser at the Ministry of Textiles, underscored the necessity for expanding industry capacity to meet rising demand and sustain competitiveness in the global market.
As they eagerly anticipate the potential FTA with the UK, Indian garment exporters are actively pursuing strategies to rejuvenate the sector and reclaim their position in the global textile and apparel market.