India-UK FTA to Boost Apparel Exports and Job Creation: AEPC

08 May 2025: In a major development for the textile industry, Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), hailed the India-UK Free Trade Agreement (FTA) as a transformative step toward increasing exports and generating employment.

He emphasized that amidst global challenges – such as economic slowdowns in key markets, ongoing geopolitical conflicts (Russia-Ukraine, Israel-Hamas), U.S. tariffs and aggressive trade practices from China – the FTA offers a much-needed competitive advantage. “This agreement eliminates the 9.6% tariff disadvantage, allowing India’s readymade garments (RMG) to enter the UK market on an equal footing with nations enjoying duty-free access,” said Sekhri.

He expressed gratitude to Hon’ble Prime Minister Narendra Modi for his strategic vision and to Union Commerce Minister Shri Piyush Goyal for driving the agreement to conclusion.

India is currently the fourth-largest garment supplier to the UK, with a 6.1% share. RMG exports to the UK reached USD 1.4 billion in FY 2024-25, growing 7.8% over the previous year. With the FTA in place, AEPC projects that exports could double within the next three years. Despite strong competition from China (25.4%), Bangladesh (19.9%) and Turkey (7.9%), India’s stronghold in categories like cotton T-shirts, women’s cotton dresses and babywear positions it well for expansion.

The deal leverages the complementary strengths of both economies and offers new momentum for growth across sectors, noted Chairman Sekhri, adding that this strategic synergy will significantly enhance India’s competitiveness in the UK market.