India is set to double its market share in the UK’s ready-made garment (RMG) imports from 6 per cent in calendar year 2024 (CY24) to 12 per cent, according to CareEdge Ratings. This shift, backed by the India-UK Free Trade Agreement (FTA), could unlock an annual export opportunity of around $1.1-1.2 billion for Indian RMG exporters in the near to medium term.
The UK, one of the top five global RMG markets, imported garments worth around $20 billion in CY24. India currently holds a modest 6 per cent share, while key competitors like Bangladesh, Turkey, Cambodia, Vietnam, and Italy enjoy duty-free access, giving them a 12 per cent tariff edge. The India-UK FTA levels this playing field and gives Indian exporters a new competitive advantage particularly over China, which exported $5 billion of RMG to the UK in CY24 but is now seeing a decline in market share.
Akshay Morbiya, Assistant Director at CareEdge Ratings, highlighted that duty removal, recovery in UK demand, and favourable policies will drive India’s export gains. However, India’s dependence on cotton textiles, in contrast to the global tilt toward man-made fibres, may slightly limit its overall growth.
Bangladesh, with around $4 billion in RMG exports to the UK, faces socio-political uncertainties, prompting global brands to diversify sourcing, including from India. This, combined with rising costs in China and the ‘China Plus One’ strategy, positions India as a strong alternative.
Krunal Modi, Director at CareEdge Ratings, said the FTA could also boost investments across the textile chain and enhance employment, particularly for women. India’s RMG exports grew 10 per cent to $16 billion in FY25, and there is potential for another 10-15 per cent growth, backed by sufficient sector capacity.
The global RMG industry stood at $525 billion in CY24, with major importers including the EU, USA, UK, Japan, Canada, and South Korea.
