India’s Free Trade Agreement (FTA) with the UK, expected to take effect in 2026, is set to remove the 8–12% import duties on Indian apparel and home textiles, potentially propelling India past Pakistan and Turkey as the third-largest supplier to the UK. Currently, India holds a 6.6% market share, slightly behind Pakistan (6.8%) and Turkey (8%).
The removal of tariffs on 99% of Indian goods under the FTA is projected to significantly raise India’s exports to the UK, doubling from $1.4 billion to $3.2 billion by 2029. ICRA forecasts a 13% compound annual growth rate (CAGR) for textile exports to the UK over the next 5–6 years.
The UK’s share in India’s textile exports is expected to rise from 7–8% to 11–13% by 2027, driven by increased capacity in garmenting and greater employment in the sector. India’s textile industry views the FTA as a game-changer in leveling the playing field with competitors like Bangladesh and Vietnam.