UK FTA: India may leave Pakistan, Türkiye behind in textile exports

India's apparel and home textiles shipments to the UK attract an 8-12 per cent import duty, that would be scrapped under the FTA expected to come into force in calendar year 2026

India UK TARDE, India, UK, INDIA UK — Icra expects India’s textile export volumes to the UK to double from their current levels in the next 5-6 years after the revised zero tariffs kick in, requiring exporters to ramp up their capacities.

2 min read Last Updated : May 20 2025 | 12:07 AM IST

India’s Free Trade Agreement (FTA) with the United Kingdom should enable it to surge past Pakistan and Turkey to emerge as the third largest supplier of apparel and textiles to the UK, with its exports set to get a level-playing field against rivals like Bangladesh, Vietnam and Pakistan that enjoy duty-free market access.

India’s apparel and home textiles shipments to the UK attract an 8-12 per cent import duty, that would be scrapped under the FTA expected to come into force in calendar year 2026, with tariffs eliminated on 99 per cent of Indian goods. While the EU and the US are India’s largest markets for apparel and home textiles, accounting for about 61 per cent of such exports in 2024, UK’s share in such exports from India has hovered between 7 per cent to 8 per cent in the last five calendar years, rating firm Icra said in a report on Monday.

Last year, the UK market’s dominant supplier was China with a share of about 25 per cent, followed by Bangladesh with a 22 per cent share, Turkey with an 8 per cent share and Pakistan with an approximate 6.8 per cent of the market. With exports of $1.4 billion in 2024, Indian textiles were just a tad behind with a 6.6 per cent market share.

ALSO READ: FTAs: It is time for India to pause and reassess its trade strategy

Icra expects India’s textile export volumes to the UK to double from their current levels in the next 5-6 years after the revised zero tariffs kick in, requiring exporters to ramp up their capacities. While such exports to the UK grew 6 per cent last year, Icra expects the compound annual growth rate of about 13 per cent over the next five-six years, with 2029 expected to record a 20 per cent growth with shipments worth $3.2 billion.

“The UK’s share in India’s textile exports is anticipated to rise from 7-8 per cent to 11-13 per cent by CY2027. This growth will be supported by incremental capacity additions in the garmenting segment, creating employment opportunities and improving earnings for exporters,” reckoned Icra’s analysts, led by senior vice president and group head Jitin Makkar.