In a major push for India's textile sector, the Union Government has concluded a landmark Free Trade Agreement (FTA) with the United Kingdom, eliminating tariff barriers on key textile products. The move is expected to significantly boost exports, particularly garments and made-ups, which earlier faced duties of 10 per cent to 12 per cent, while yarns and fabrics saw levies of 4 per cent to 8 per cent.

S K Sundararaman, Chairman of The Southern India Mills Association (SIMA), hailed the FTA as a ‘historic’ step, expressing gratitude to Prime Minister Narendra Modi and Union Ministers Piyush Goyal and Giriraj Singh for their efforts. He highlighted that India’s textile and clothing exports to the UK had declined from $2,370 million in 2017-18 to $2,119 million in 2024-25 due to tariff disadvantages. With the FTA, exports are poised for a turnaround, especially in segments like ready-made garments, which constitute around 70 per cent of India’s textile exports to the UK.

The UK, being the second-largest market for Indian garments, offers vast growth potential. Industry stakeholders believe this zero-duty access will help revive struggling sectors such as home textiles from clusters like Karur, which have faced stiff competition from countries like Pakistan.

The government has set an ambitious target to grow the Indian textile industry from $165 billion to $350 billion by 2030, with exports rising to $100 billion. The FTA is expected to attract $100 billion in new investments and create 10 million jobs over the next five years. The zero-duty regime is also expected to enhance the success of PM MITRA Parks, PLI, and NTTM schemes, helping India tap into its surplus capacity and elevate its global competitiveness.