Scheduled for April 2026, the implementation of the India-UK Comprehensive Economic and Trade Agreement (CETA) is fundamentally reshaping the bilateral apparel landscape. Following the landmark women-led trade mission to London and Manchester this month, Indian exporters are moving to capitalize on the elimination of the 8-12 per cent import duties that previously hindered price competitiveness. This fiscal advantage places Indian manufacturers on equal footing with regional competitors such as Bangladesh and Vietnam. Industry forecasts suggest this tariff parity will catalyze a 30 per cent to 45 per cent growth in textile exports by 2030, as major UK retailers actively seek to diversify their supply chains away from over-reliance on single-source markets.
Sustainability and high-value specialization
The recent trade mission highlighted a critical shift toward value-added segments, including GI-tagged silks and ethically sourced handloom products. With the UK apparel import market valued at approximately $27 billion, Indian firms are targeting a market share increase from the current 6.6 per cent to over 10 per cent within 24 months. Large-scale operators like Gokaldas Exports and Arvind Ltd are expanding production capacities to meet this anticipated volume, specifically focusing on technical textiles and organic cotton. The zero-duty regime is not merely a cost-saving measure; it is a strategic entry point for high-end, sustainable Indian fashion into the British high street, noted a senior trade official during the London roundtable.
A $174 billion powerhouse and the nation’s second-largest employer, the Indian textile industry, is transitioning toward a $350 billion valuation by 2031. Key clusters in Tiruppur and Noida are prioritizing the UK as a primary growth territory for ready-made garments. Through aggressive capital investments and the adoption of the Double Contributions Convention to streamline labor costs, the sector aims to double its UK revenue to $4 billion by 2029, bolstered by a history of artisanal excellence and modern manufacturing scale.
