Boosting Indian Apparel: India-UK Trade Pact Opens New Doors

The India-UK free trade agreement, officially known as the Comprehensive Economic and Trade Agreement (CETA), promises to bolster the garment industry by enhancing market access, stimulating investment, and creating job opportunities, according to the Apparel Export Promotion Council (AEPC).

Signed in London in the presence of Indian Prime Minister Narendra Modi and UK Prime Minister Keir Starmer, the pact aims to offer Indian apparel products competitive access to the UK market, as noted by AEPC Chairman Sudhir Sekhri. The agreement will also simplify customs procedures and facilitate mutual recognition of standards, alleviating compliance burdens for Indian exporters.

With the advantage of duty-free access, Indian apparel exports to the fashion-centric UK are expected to gain momentum. The UK, a significant global fashion hub, imported garments valued at USD 19.7 billion in 2024. Although India's significant exports of cotton-based apparel rank it among the top suppliers to the UK, challenges remain in winter wear and man-made fiber garments due to a competitive duty rate of 9.6% for numerous products.

(With inputs from agencies.)