India-UK CETA Drives Surge in UK Export Orders Ahead of July 15 Implementation

Textile, garment, leather, gems and jewellery exporters report higher UK demand as buyers prepare for tariff reductions under the India-UK Comprehensive Economic and Trade Agreement.

Indian exporters have reported a rise in purchase orders from the United Kingdom as the India-UK Comprehensive Economic and Trade Agreement (CETA) approaches its implementation on July 15. According to exporters, UK buyers are placing orders in advance to benefit from the tariff reductions that will come into effect under the agreement.

Textile and garment exporters said orders from the UK have increased by approximately 12% compared with the same period last year.

Sharad Kumar Saraf, chairman of Technocraft Industries and a manufacturer and exporter of cotton yarn, fabrics and garments, said:

"The order booking is happening for textiles and garments. Around 12% orders have been added as CETA will give a push to apparel and madeups business. We expect good business."

Exporters from the leather sector also reported higher demand. Orders for leather handbags and shoes have increased by around 20%, while exporters in the gems and jewellery sector said consignments worth $6.5 million are ready for shipment.

Ramesh Juneja, promoter of Kolkata-based JC Group, a manufacturer of leather and leather goods, said:

"Orders have increased 20% year-on-year in segments such as ladies handbags and shoes."

Under the agreement, existing tariffs of up to 16% on leather and footwear products and up to 12% on textiles and clothing, along with tariffs of up to 8% on chemicals and pharmaceuticals, will be eliminated, improving the competitiveness of Indian exports in the UK market.

Shaunak Parikh, vice-chairman of the Gem and Jewellery Export Promotion Council, said improved market access and a level playing field are expected to increase India's gems and jewellery exports to the UK to around $2.5 billion. Bilateral gems and jewellery trade between the two countries could reach $7 billion, he added.

Carpet exporters also expect bulk orders from the UK, following a slowdown in demand after Brexit.

Toy exporters reported a rise in enquiries from UK buyers, although they noted that regulatory compliance requirements continue to make order conversion and business decisions time-consuming.

Meanwhile, the Ministry of Commerce and Industry has asked export promotion bodies to provide details of export consignments that are expected to be shipped on the date CETA comes into force.