India-UK FTA to open new opportunities for textiles, boost footwear exports

The India-UK free trade agreement is expected to significantly boost India's textile and footwear exports, unlocking Rs 7,000 crore in additional business and accelerating growth in the sector

The signing of the India-UK Free Trade Agreement (FTA) is expected to boost the labour-intensive Indian export sectors like textiles and footwear, among others.

 

According to industry estimates, the deal may bring in additional business of around ₹7,000 crore to the textile and apparel (T&A) industry in India, taking it forward to the 2030 target of $100 billion exports. Similarly, footwear (leather and non-leather) and other leather products’ trade is expected to touch $1 billion in two years, from $440 million now. The deal may turn advantageous for footwear brands like Clarks, Superdry, Marks & Spencer (M&S), and John Lobb that source from India.

 

“It has the potential to significantly transform the fortunes of the entire Indian textile sector, and provide the kind of impetus that is necessary to help India realise its ambitious goal of achieving textile and apparel exports of $100 billion by 2030,” said Rakesh Mehra, chairman of the Confederation of Indian Textile Industry (CITI). Tiruppur Exporters’ Association also expects that through the FTA, the share of UK exports from the textile hub to double from ₹5,000 crore or 9 per cent to around 20 per cent of the hub's total revenue.

 

“India’s strong presence across the value chain — with readily available raw materials and intermediate goods, and minimal import dependency — is a USP (unique selling proposition). Coupled with the duty-free advantage under the FTA, India is well-positioned to scale up exports. The industry aims to increase its UK market share from 6 per cent to 10 per cent over the next two years, unlocking an estimated ₹6,000-7,000 crore in additional business, with steady and gradual growth expected,” said Prabhu Dhamodharan, convenor, Indian Texpreneurs Federation (ITF). 

 

India is the fourth-largest supplier of textile and apparel products to the UK, with a nearly 6.6 per cent share in the country’s total T&A imports. During 2024, the UK imported T&A products worth about $27 billion, with apparel and made-ups constituting 83 per cent of the total. With about a 25 per cent share in the total T&A imports, China was the leading supplier to the UK, followed by Bangladesh and Turkey, whose market shares were 15 per cent and 8.5 per cent, respectively. “The UK is mainly a consuming market; hence, it is a positive development for India. This will add another $1 billion worth of trade in the textile sector in the next one year,” said Sanjay Kumar Jain, managing director (MD) of textile producer TT Ltd.

 

Footwear industry upbeat

 

The footwear industry is also upbeat about the development. According to N Mohan, director of Kothari Industrial Corporation and a member of the National Footwear and Leather Development Council, this deal may bring in more brands to Indian soil. “This will be advantageous for Clarks, as it buys 8-10 million pairs per annum from India. Other major beneficiaries could be Superdry, M&S, and John Lobb. The Indian industry should also broaden its product offering by looking more into women’s fashion footwear and the kids segment, in addition to our strong base in men’s footwear,” Mohan said. He expects the leather and non-leather trade to touch $1 billion through the deal.

 

“This is going to be beneficial for not just leather, but also for a lot of non-leather companies that are coming up in Tamil Nadu. This will be a fresh boost for the Indian footwear industry,” said V K C Razak, MD of footwear major VKC group.