FTA with UK to help double garment exports to Britain in 3 years: AEPC

The free trade agreement (FTA) with the UK will help double India's ready-made garment exports to Britain in the next three years, AEPC said on Wednesday.

Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said that against the backdrop of demand contraction in major economies, Russia-Ukraine conflict, Israel-Hamas war, American reciprocal tariff and Chinese belligerence, there was uncertainty and disruption impacting the global trade adversely.

"This deal has come as a boon, removing immediately tariff disadvantage of 9.6 per cent and making us competitive in the UK market. Now the Made in India ready-made garment will be cheaper on UK shelves and we will be at par with some of our major competitors who enjoyed duty-free access in the UK market," he said.

India is the fourth largest supplier of garments with a 6.1 per cent share of the total RMG import of the UK.

The exports to the UK from India grew 7.8 per cent to USD 1.4 billion in 2024-25.

"With this deal in place, India is all poised to double the RMG exports to the UK in the next three years," he said.

China is the top supplier of RMG to the UK. It is followed by Bangladesh and Turkey.

The top products imported by the UK from India includes t-shirts, singlets and other vests of cotton, knitted or crocheted; women's or girls' dresses of cotton; babies' garments and clothing accessories of cotton, knitted or crocheted.

"Huge opportunities offered by this deal, coupled with the complementary nature of the two economies and synergy across sectors, will help in rapid growth and expansion of apparel business by providing a competitive edge over our competing countries," Sekhri said.

AEPC Vice Chairman A Sakthivel said that the FTA is expected to pave the way for long-term growth, attract investment, and create a more favourable business environment for textile stakeholders in both countries.

"By unlocking new export opportunities, reducing trade barriers, and enabling greater access to the premium UK market, this agreement promises to empower Indian weavers, manufacturers, and exporters across the value chain," he said.