India-UK FTA to Boost Apparel Exports and Investments

28 July 2025: The Apparel Export Promotion Council (AEPC) has lauded the signing of the historic Free Trade Agreement (FTA) between India and the United Kingdom, finalized during Hon’ble Prime Minister Narendra Modi’s visit to the UK. AEPC Chairman Shri Sudhir Sekhri expressed gratitude to the Prime Minister and the Union Commerce Minister Shri Piyush Goyal for their dedicated efforts in concluding this agreement.

Sekhri remarked, “The India-UK Bilateral Trade Agreement is a pivotal step in strengthening the strategic and economic relationship between our nations. It heralds a transformative phase for the garment trade with the UK, facilitating broader market access, encouraging investments, and generating employment in the apparel sector. It also paves the way for expanded opportunities for businesses and consumers on both sides.”

He further highlighted that the FTA would not only grant Indian apparel products competitive access to the UK market but also foster greater trust through streamlined customs procedures and mutual standard recognition. These measures are expected to significantly reduce compliance challenges for Indian exporters. Duty-free access will offer fresh impetus to Indian apparel exports to the UK in the years ahead. “The agreement reflects the shared commitment to deepening collaboration between two great nations,” he added.

Recognizing the UK as a major global fashion destination and the world’s fifth-largest garment importer – with imports worth USD 19.7 billion in 2024 – Sekhri emphasized India’s strong presence in the UK market. In 2024, India exported garments worth USD 1.2 billion, positioning itself among the top four suppliers to the UK.

Currently, Indian garment exports to the UK attract a 9.6% duty. India primarily exports cotton-based garments such as t-shirts, women’s dresses and babywear, but faces competitive challenges in segments like winter wear and man-made fiber (MMF) garments.