The Apparel Export Promotion Council (AEPC) has hailed the India-UK free trade agreement as a game-changing development for the ready-made garment (RMG) sector. AEPC Chairman Sudhir Sekhri called the deal a ‘landmark’ move that will enhance India's competitiveness in the UK market by immediately eliminating the existing 9.6 per cent tariff disadvantage.
“This FTA comes at a critical time when global trade is impacted by demand contraction, the Russia-Ukraine conflict, Israel-Hamas war, American tariff actions, and Chinese assertiveness,” Sekhri said. “With this deal, ‘Made in India’ garments will now be more affordable on UK shelves, bringing us at par with major competitors already enjoying duty-free access.”
Sekhri expressed gratitude to Prime Minister Narendra Modi for his leadership and to Union Commerce Minister Piyush Goyal for pushing the deal to fruition.
India is currently the fourth-largest RMG supplier to the UK, holding a 6.1 per cent market share. RMG exports to the UK grew 7.8 per cent during April-March 2024-25 compared to the previous year, reaching $1.4 billion. With the FTA now in effect, AEPC expects exports to double within the next three years.
In 2024, China led UK’s RMG imports with a 25.4 per cent share, followed by Bangladesh (19.9 per cent) and Turkey (7.9 per cent). India’s top RMG exports to the UK include cotton T-shirts, women’s dresses, and baby garments.
Sekhri added that the deal opens up significant opportunities, leveraging the complementary strengths of both economies and offering Indian exporters a strong competitive edge.
