India Poised to Significantly Boost UK Garment Exports Following FTA
17 May 2025: India’s share in the United Kingdom’s readymade garment (RMG) import market is projected to double from 6 percent in 2024 to 12 percent, a development primarily attributed to the removal of import duties under the forthcoming India-UK Free Trade Agreement (FTA). This anticipated growth is expected to generate an additional annual export opportunity for India valued at approximately $1.1 to $1.2 billion in the near to medium term, according to a report released by CareEdge recently. Report highlights the FTA as a transformative development for India’s RMG sector, establishing a more equitable competitive landscape for Indian exporters in accessing the UK market when compared to other major supplying nations.
With the implementation of the FTA, India is set to gain a clear 12 percent duty advantage over China, which currently holds the largest portion of the UK’s RMG imports at 25.6 percent as of 2024. While countries such as Bangladesh (with a 19.9 percent market share), Turkey (7.9 percent), Cambodia (5.5 percent), and Italy (5.2 percent) presently benefit from duty-free access to the UK market, Vietnam (5.4 percent) and Pakistan (4.8 percent) also benefit from preferential tariff rates, ranging from lower duties to zero tariffs.
The analysis also notes that China’s market share in the UK’s RMG sector has been declining in recent years. This trend is expected to persist due to diminishing competitiveness, driven by factors such as rising labor expenses and the adoption of ‘China plus one’ sourcing strategies by international apparel brands and retailers.
However, the report cautions that India’s significant reliance on cotton-based textiles, in contrast to the higher prevalence of man-made fibers in the global RMG market, could partially temper the full potential benefits of the India-UK FTA. Currently, India’s RMG exports to the UK are valued at nearly $1.2 billion, out of the country’s total RMG exports ranging between $15 billion and $16 billion. The UK stands as one of the top five global markets for RMG imports, with total imports valued at around $20 billion in 2024.
