Given the UK’s supply, Indian textile and garment exporters will be the biggest beneficiaries. These exporters are facing tariffs of up to 12% and will now enter the UK market with zero payment.
India's clothing exports alone exceeded US$1.3 billion, up 20% from a year ago until January of the previous fiscal year. Experts say India's share of the UK apparel market is about 6%, highlighting the huge growth potential of this segment.
Sanjay Jain, former chairman of the Indian Textile Industry Federation, called the trade deal a “game changer” in the textile industry.
The deal with the UK “opens the floodgates of apparel exports to UK”, said Sudhir Sekhri, chairman of the Apparel Export Promotion Council.The textiles and garments sector is the biggest employee in India after agriculture, having directly employed over 45 million people.The FTA “unlocks fresh opportunities by reducing tariff barriers, encouraging technology exchange, and enhancing market access”, said Mukesh Kansal, chairman at CTA clothing.
Similarly, India's exports of footwear and gemstones and jewelry will be taxed at 16% and 4% respectively. India shipped $184 million worth of footwear until January of the previous fiscal year, up 4% from the same period last year.
According to Kirit Bhansali, chairman of the Gem and Jewelry Export Promotion Committee, exports to the UK will be $941 million in 2024.
He said the FTA is expected to essentially accelerate our gem and jewelry exports to the UK by about $2.5 billion over the next two years.
Similarly, the leather sector will benefit from the zero tariff market. India's exports to leather and related products grew 21% year-on-year until $149 million in the previous fiscal year.
