The uplift, experts say, will come not just from greater volumes but also from the ability to export higher-end finished goods directly to UK consumers
India’s textile sector is poised for accelerated growth following the signing of the India-United Kingdom Free Trade Agreement (FTA) on 24 July. The FTA enables duty-free access and removes tariffs of up to 12 per cent, offering Indian manufacturers a competitive edge. The agreement presents an opportunity to double the export numbers to the UK market in the next two to three years, provided the other aspects, such as compliance, are also taken care of.
In textiles and clothing, while the UK’s total imports (USD 26.95 billion) are lower than India’s global exports (USD 36.71 billion), India still supplies only USD 1.79 billion to the UK. Sectors poised for exponential growth include readymade garments (RMG), home textiles, carpets, and handicrafts, where the removal of duties creates immediate and substantial competitive advantages.
“India can emerge as a value-driven textile and clothing hub for the UK by leveraging its strength in affordable, high-quality manufacturing and a vast pool of skilled labour. The India-UK FTA, which removes tariffs on 99 per cent of Indian goods, further enhances competitiveness. By offering innovative, ethically produced garments at scale, India is well-positioned to boost its UK market share from 6 per cent to 10 per cent in two years,” highlighted Ramesh Agarwal, Whole-Time Director, Rupa and Company.
Value-driven Textile Hub For UK
Experts explained that India’s role must transcend being a low-cost manufacturing hub as true, sustainable competitive advantage lies in becoming a ‘conscience-driven’ and ‘culture-rich’ hub. India’s strengths in both mass-market production and niche segments like sustainable fabrics, handlooms, and high-end fashion make it a strategic sourcing partner for the UK’s evolving retail and ethical consumption landscape.
“India should in fact to be a stronger player in the value ‘added’ segment, where we are seen as a compliant, dependable, and design-led supplier of quality products which is yet cheaper than some of our EU-based competitors,” noted Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI).
India will be an important player in the value-driven segment of UK, but we will need to keep in mind that competitors such as Bangladesh are still intrinsically cheaper by 10 per cent to 12 per cent, and they will continue to play a vital role in this segment, experts pointed out.
“India, though self-sufficient in raw materials, has a very fragmented manufacturing base with expertise spread across different clusters. To beat the competition from countries like Bangladesh, China, Pakistan and Vietnam in terms of cheaper labour, productivity, quality and economies of scale, India would have to concentrate on a USP, preferably address special niche areas or ultra-luxury segments,” noted Pramod Shetty – Professor and Area Chairperson – Operations, K J Somaiya Institute of Management.
Meeting UK’s Standards
Noting that Indian textile and apparel makers are well-prepared to meet UK quality standards, experts pointed out that with robust institutional support, over 10 textile research associations, Bureau of Indian Standards (BIS) alignment, and 11 major textile clusters like Tirupur, Surat, and Ludhiana, India ensures quality and compliance.
“Over the past few years, the industry has adopted modern manufacturing, quality control, and sustainable practices. Leading exporters already meet or exceed UK standards in areas like ethical sourcing, product durability, and environmental compliance. However, many small and medium enterprises (SMEs) still face challenges related to certifications, traceability, and audit requirements,” Abhishek Dua, Co-founder and Chief Executive Officer (CEO), Showroom B2B.
Experts noted that targeted support is needed to help these players fully align with UK and European Union (EU) regulatory norms. The low-hanging fruits are expected to be manufacturing low-cost basic garments or catering to high-volume fast fashion, where price competition is expected to be intense. Indian manufacturers will be required to invest in setting up enhanced quality control protocols and regular compliance measures, such as pre-shipment inspections (PSI), lab testing and certifications and inline production checks.
“Larger export-focused firms routinely carry out pre-shipment checks, lab tests, and follow recognised certifications like ISO to ensure their products meet the technical and quality benchmarks required by buyers in the UK. These checks are no longer a formality but a standard part of the production and shipping process,” highlighted Suketu Shah, CEO of Vishal Fabrics.
What’s In Store For MSMEs?
MSMEs require assistance in overcoming non-tariff barriers, subsidised technology upgrades, and simpler access to financing in order to fully take advantage of the UK opportunity. Since only a limited percentage of small textile firms currently meet the EU, UK standards, experts highlighted that capacity building in compliance and certifications is essential.
“Support for MSMEs must go beyond grants. We need an ecosystem providing knowledge to demystify UK standards, shared infrastructure for quality testing, and platforms for direct market linkage. However, our greatest challenge is execution. We must avoid bureaucratic delays and ensure support is agile and reaches the last-mile artisan swiftly,” Shriya Nagi, Co-Founder of Mrida, explained.
MSMEs will be able to expand their exports with the support of targeted government incentives, expedited customs clearances, and free trade agreements that take technical standards into account. Shared infrastructure through schemes like PM Mitra and Samarth can also lower production costs and enhance global competitiveness for MSMEs, as per the experts.
“Gaps in technology, scale, compliance readiness, and access to cost-efficient capital can pose significant challenges for Indian MSMEs to tap into the UK opportunity. There is a need to further segment MSMEs into medium, small and micro segments and provide different support systems and enablers,” stated Premchand Chandrasekharan, Partner, Avalon Consulting.
While the India-UK FTA is a structural game changer for our textile sector, this is not just about selling more; it is about selling better. The FTA is a gateway to deeper integration with the UK value chain, moving us from being a mere supplier to a genuine partner. The boost will come not just from volume, but from the opportunity to export higher-value, finished goods directly to British consumers.
