India-UK FTA to Revolutionize Apparel & Textile Exports

13 May 2025: The recently finalized India-UK Free Trade Agreement (FTA) is being celebrated as a transformative leap for India’s economic and export landscape – particularly in the apparel and textile industry. The agreement eliminates tariffs on 99% of Indian exports, dramatically expanding India’s access to the UK’s premium market and paving the way for robust growth in exports, job creation, and sectoral development.

The deal provides critical support to labour-intensive industries like apparel, textiles, leather, toys, marine products, and footwear. For the textile and apparel segment, it removes key trade bottlenecks, levels the playing field and enhances India’s competitiveness globally – aligning with Prime Minister Narendra Modi’s vision of promoting Indian heritage, craftsmanship, and innovation on a global platform.

Dr. A. Sakthivel, Chairman of the Apparel Made-Ups & Home Furnishing Sector Skill Council, praised the agreement as a monumental achievement. He commended Prime Minister Modi and Union Commerce Minister Shri Piyush Goyal for their leadership in driving the agreement to fruition. “This historic deal will significantly enhance India’s textile exports and stimulate employment and economic growth,” Dr. Sakthivel noted.

In addition to merchandise trade, the FTA opens new frontiers in services related to apparel and retail, enabling greater global engagement for Indian professionals, especially young talent and entrepreneurs. A key highlight is the three-year exemption from UK social security contributions for Indian professionals, enhancing take-home earnings and enabling easier international collaboration.

The agreement strengthens bilateral ties, promotes global mobility, and underscores India’s emergence as a reliable trade partner in post-Brexit Europe. It sets the stage for inclusive, sustainable growth, and a stronger global footprint for India’s textile and apparel sectors.