India anticipates a significant rise in textile exports to the United Kingdom following the recent signing of a Free Trade Agreement (FTA) with the nation, said Giriraj Singh, Union Textiles Minister at Moneycontrol’s Powering Bharat Summit 2025.
The Minister stated, he expects textile exports to the UK to rise from $1.5 billion to $5 billion. However, this increase will be rapid, not gradual, he added.
He attributed the anticipated export growth to the tariff reductions outlined in the FTA, emphasizing how competitors such as Bangladesh and Vietnam had previously gained an advantage in the global textiles market by entering into similar free trade agreements.
Earlier this month, India and the UK finalized a Free Trade Agreement (FTA), representing a major trade deal between the two countries that follows a period of global trade uncertainty. The FTA eliminates the existing 12 per cent tariff on Indian textile exports to the UK. This zero-duty access is projected to substantially improve the price competitiveness of Indian goods in a key market.
The India-UK FTA signifies a significant step in their bilateral trade relationship. It is the first comprehensive agreement signed between the two nations after years of discussions and occurs at a time when India is actively working to broaden its export markets and lower tariff barriers through bilateral trade agreements.
Singh also highlighted India’s robust textile value chain. India has comprehensive, end-to-end solutions in textiles, he said, adding that the government is dedicated to meeting the clothing demands of the country’s expanding population.
Addressing concerns about competition from nations like Bangladesh and Vietnam, Singh asserted, India possesses the required infrastructure, investment support, and workforce.
Prime Minister Narendra Modi has ensured sufficient investment in the textile sector. There is no shortage of labor in India, he stated.
The new FTA is expected to benefit not only Indian exporters but also to stimulate employment in textile manufacturing centers across various states.
