A new chapter for the global fashion and textile industry will be written, with the new India-UK Free Trade Agreement (FTA) serving as the pen. Industry leaders and government officials from India, meeting at a high-profile roundtable in London in September 2025, expressed overwhelming confidence that the deal will not only bolster bilateral trade but also position the two nations as a manufacturing powerhouse for the world.
The FTA, which was concluded in July and is expected to be operational by the end of India's current financial year, is a "gateway to all of this," according to Vikram Doraiswami, the High Commissioner of India to the UK. He highlighted India's unique position as one of the only countries in the world with a complete, end-to-end textile value chain, from "the growth of cotton right up to the finished product."
This comprehensive capability, combined with a youthful and vast workforce, makes India an unmissable partner for the UK and the global market. "I would say there is no choice. It's just that you are delaying this decision," opies Shubhra Agarwal, a trade advisor from Ministry of Textiles.
A partnership for global ambition
The ambition of the new agreement extends far beyond simple bilateral trade. Doraiswami emphasized the potential for the two nations to become "partners for the global market" and even for the "totality of the opportunity in the European continent." He sees a clear synergy, with the UK's innovation and design prowess a "place in which a lot of this innovation takes place," complementing India's manufacturing strength. This partnership could see new collaborations in high-end fashion, sustainable materials, and the rapidly growing sportswear and athleisure sectors.
Sudhir Sekhri, Chairman, Apparel Export Promotion Council (AEPC), is bullish on the immediate impact. He predicts that India’s textile and apparel exports to the UK will grow at least two and a half times within the next three years, making India the UK’s second-largest supplier. Sekhri also notes that the swift implementation of the agreement is now in the hands of UK buyers, who must pressure their government for timely approval.
Focus on sustainability, technology, and traceability
The roundtable also underscored India's commitment to modern, sustainable, and transparent manufacturing practices, which align with the demands of major UK retailers like Primark, ASOS, and Boohoo. The Indian government has launched several initiatives to support this transformation.
For example the Production Linked Incentives (PLI) scheme, program is designed to attract investments in high-value man-made fibers (MMF), apparel, and technical textiles, ensuring the industry evolves with global demands. The PM-MITRA scheme an initiative to create seven mega textile parks across India, providing world-class infrastructure to streamline production and foster innovation.
Then there is the traceability blockchain system by the Cotton Textiles Export Promotion Council (TEXPROCIL). It is a groundbreaking blockchain system that allows end-to-end traceability of cotton, from the farm to the final product. Siddhartha Rajagopal, TEXPROCIL's Executive Director, claims this indigenously developed platform is a world-first, providing real-time data and rigorous testing to ensure authenticity. Vijay Kumar Agarwal, Chairman of TEXPROCIL, highlighted the system, noting it "can trace which farm the cotton has come from, right up to which factory has produced the final product."
Domestic and global growth
Beyond exports, panelists also pointed to the immense potential of India’s domestic fashion market. India’s high commissioner Doraiswami noted that the market, projected to be worth $250 billion by 2030, presents a "considerable" opportunity for UK manufacturers to partner with Indian businesses. The rapid growth of both high-end and fast fashion segments in India, along with the exponential rise of e-commerce, is transforming the retail landscape across the country. Neelam Shami Rao, Secretary, Ministry of Textiles, emphasized the critical role of technology in achieving India's ambitious target of $100 billion in textile exports by 2030. She cited tools like VisioNxt, a smart forecasting tool developed by the National Institute of Fashion Technology (NIFT) that uses intelligent modeling to predict future trends, colors, and designs.
The consensus from the London roundtable was clear: the India-UK FTA is more than a trade deal. It is a strategic partnership designed to leverage the unique strengths of both nations, driving growth, innovation, and sustainability in the global fashion sector for years to come.
