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India-UK FTA talks resume: What it means for Indian textile industry

01 Mar '25

5 min read

India-UK FTA talks resume: What it means for Indian textile industry

Insights

India and the UK are set to restart negotiations on an FTA, which could significantly benefit Indian textile and apparel exporters.
With China dominating UK apparel imports, the agreement presents India with an opportunity to strengthen its position.
Additionally, the FTA could attract investment, improve production efficiency, and enhance India-UK apparel trade.

The Free Trade Agreement comes at a time when the US is looking to impose tariffs on several nations, including India. China, in particular, has been focusing on exploring the UK and EU markets due to the heightened tariffs it is expected to face under the Trump administration. Despite these challenges, China still reigns supreme and ranks first overall in textile exports. With renewed efforts to not only maintain its position but also to supply the UK with a higher volume of products, China is poised to capture a significant share of India’s textile exports. A majority of UK-based apparel companies also source from predominantly Chinese suppliers. India’s FTA, therefore, arrives at a crucial moment and could be the right move amidst trade uncertainty and China’s increasing focus on the European market.

Exhibit *: Top Indian textile exports to the UK (in $ mn)