India-UK Free Trade Agreement (FTA) and Its Impact on Indian Export Sectors
The recently signed India-UK Free Trade Agreement is anticipated to significantly bolster India's labor-intensive export sectors, particularly textiles and footwear.
Impact on Textile and Apparel Industry
- Industry estimates suggest an additional business of around ₹7,000 crore for the textile and apparel sector.
- Aims to achieve the 2030 export target of $100 billion.
- Quoting Rakesh Mehra, chairman of CITI, the FTA could transform the fortunes of the Indian textile sector.
- Tiruppur Exporters’ Association predicts the UK exports share from the hub could double from ₹5,000 crore to 20% of the total revenue.
- India aims to boost its UK market share from 6% to 10% in two years, unlocking ₹6,000-7,000 crore in extra business.
India as a Major Textile Supplier
- India holds a 6.6% share in the UK’s total textile and apparel imports, making it the fourth-largest supplier.
- The UK imported textile and apparel products worth $27 billion in 2024, with China leading at 25%, followed by Bangladesh and Turkey.
Impact on Footwear Industry
- The footwear sector, including leather and non-leather products, expects trade to reach $1 billion from $440 million currently.
- The FTA is beneficial for brands like Clarks, Superdry, M&S, and John Lobb, with Clarks purchasing 8-10 million pairs annually from India.
- Emphasis on expanding into women's and children's footwear sectors.
- N Mohan and VKC Razak highlight the potential boost for non-leather companies emerging in Tamil Nadu.
Conclusion
The India-UK FTA is positioned as a strategic move to enhance trade relations, providing duty-free advantages and a significant growth prospect for India's exports in textiles and footwear.
