Home / Knowledge / News / Textiles / Right time for India-UK FTA due to Brexit: ITF

Right time for India-UK FTA due to Brexit: ITF

16
Jan '20
UK textile and clothing imports. Pic: ITF
UK textile and clothing imports. Pic: ITF
With the UK scheduled to leave the European Union at the end of this month, it is currently the right time for India to sign a free trade agreement (FTA) with the European nation. India-UK FTA can be a big boost to the Indian textiles and apparel industry, with a potential to add $3 billion additional exports and create 5-6 lakh direct jobs.

"The entire textile value chain from cotton farmers, spinners, weavers, apparel manufacturers, and SME units across the sector will be beneficiaries of exports' growth from this high potential FTA," Indian Texpreneurs Federation (ITF) said.

At present, India's share in the UK market is only 6.25 per cent. Hence, post-Brexit India has great opportunity to increase its market share substantially.

The signing of FTA with UK will help India manage the tariff disadvantage of 8-12 per cent that Indian goods will probably face, which is substantial for any buyer from the UK. And being a single country FTA, the Government of India can try to conclude the deal at the earliest, ITF said.

While Bangladesh enjoys duty free access to the UK market, Vietnam has signed an FTA with EU (including UK) on June 30 last year. With an FTA with the UK, India can achieve a level playing field with Bangladesh—its current competitor, and Vietnam—its potential competitor, in the UK market.

Moreover, it will give advantage over EU countries in UK. UK, currently being part of EU, offers zero custom duty to members of EU. This situation may change after Brexit as UK may impose 12 per cent duty on textile and clothing. Currently, textile and clothing goods enter UK from Germany, Italy, the Netherlands, Belgium and France to the extent of 23.48 per cent of UK's imports.

Fibre2Fashion News Desk (RKS)


Must ReadView All

Pic: AKS Clothings

Textiles | On 29th Jan 2020

MSMEs expect favourable policies in Union Budget 2020-21

Introduction of favourable policies, allocation of substantial funds...

Pic: Shutterstock

Apparel/Garments | On 29th Jan 2020

Sri Lanka's Knitline Apparels to set up manufacturing unit

Knitline Apparels Ltd chief executive officer Riz Onies recently...

Pic: Shutterstock

E-commerce | On 29th Jan 2020

Dubai set to be Middle East hub for e-com: Savills

E-commerce is the top sector driving demand for warehousing sector in ...

Interviews View All

Victor Chao, Esmetex

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Textile industry, Head honchos

Textile industry
Head honchos

South India has a very strong manufacturing base

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Roz Guarnori,

Roz Guarnori

FESPA Global Print Expo 2019, to be held in Munich from May 14-17, is...

Harssh Chheda,

Harssh Chheda

Mumbai-based Corporate Collars provides bespoke tailoring services for...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johann-Philipp Dilo, Dilo Group

Johann-Philipp Dilo
Dilo Group

German company Dilo Group is one of the leading equipment suppliers of...

Shujaul Rehman, Garware Technical Fibres

Shujaul Rehman
Garware Technical Fibres

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search