India–UK FTA Welcomed by Apparel Sector; AEPC Thanks PM Modi & Minister Piyush Goyal
The India–UK Free Trade Agreement (FTA) signed during Hon’ble Prime Minister Shri Narendra Modi’s official visit to the United Kingdom has been met with strong applause from the Indian apparel industry. The Apparel Export Promotion Council (AEPC) has termed it a historic breakthrough that will boost bilateral trade, enhance India’s competitiveness, and unlock investment and employment opportunities.
“Landmark Trade Deal Will Redefine Garment Sector Growth” – AEPC Chairman
Shri Sudhir Sekhri, Chairman of AEPC, commended the Government’s tireless work in finalizing the agreement, particularly recognizing the roles of Prime Minister Narendra Modi and Union Commerce Minister Shri Piyush Goyal.
He stated, “The signing of this landmark Bilateral Trade Agreement marks a major milestone in deepening the economic and strategic cooperation between India and the UK. It heralds a new era for garment trade and will provide enhanced market access, encourage investment, and foster job creation in the sector.”
Duty-Free Access & Simplified Trade Norms to Benefit Indian Exporters
The FTA removes the 9.6% duty on most Indian apparel exports to the UK, leveling the playing field with countries like Bangladesh and Pakistan that already enjoy zero-duty access. The agreement also promises streamlined customs procedures, mutual recognition of standards, and reduced compliance burdens for Indian exporters.
“The India–UK FTA will not only enable competitive access for Indian apparel in the UK market, but also enhance trust and reliability through regulatory alignment,” said Sekhri. “This will reinvigorate export momentum and strengthen India’s role as a preferred sourcing destination.”
UK: A Strategic Fashion Market for India
The United Kingdom is the world’s fifth-largest garment importer, purchasing USD 19.7 billion worth of garments in 2024. India exported USD 1.2 billion to the UK that year, making it one of the country’s top four apparel suppliers. India primarily exports cotton-based garments such as T-shirts, women’s dresses, and babywear, though it has faced challenges in winterwear and MMF (man-made fibre) garments due to cost competitiveness.
With the FTA eliminating tariff barriers, Indian manufacturers now have a stronger foothold in the UK’s fashion ecosystem, paving the way for diversified product offerings and longer-term supplier relationships.
A Shared Vision for Trade-Driven Growth
The FTA symbolizes the shared commitment of India and the UK to deepening trade ties, boosting employment, and promoting innovation in the textile and apparel space. It will act as a catalyst in realizing the vision of ‘Make in India for the World’ by expanding India’s presence in high-value fashion markets.
AEPC has reaffirmed its commitment to work closely with industry players and government stakeholders to maximize the opportunities emerging from this landmark agreement.
