India-UK Free Trade Agreement Expected to Double Karur’s Home Textile Exports to UK Within Two Years

First consignment of home textile products to England dispatched after implementation of the India-UK Free Trade Agreement (FTA)

The first consignment of home textile products from exporters in Karur to England, after implementation of the India-UK Free Trade Agreement (FTA), was flagged off on Wednesday.

Collector C. Muthukumaran flagged off the consignment in the presence of D. Sridhar, Additional Director General of Foreign Trade, Coimbatore, and members of the Karur Textile Manufacturers and Exporters Association (KTMEA).

According to P. Gopalakrishnan, president of KTMEA, the agreement marks a historic milestone for the Indian textile sector and is expected to significantly benefit the Karur Home Textile Cluster, one of India's leading home textile manufacturing and export hubs.

Until now, most home textile products exported from Karur to the United Kingdom attracted import duties ranging from 8% to 12%. The duties increased the landed cost of Indian products, making them less competitive compared to products from countries enjoying preferential trade access.

With the implementation of the India-UK FTA, the import duties have been eliminated, enabling duty-free access for eligible Indian home textile products into the UK market. This would substantially reduce the landed cost of products, improve price competitiveness, and create a significant advantage for Indian exporters.

Further, the agreement is expected to enhance the global competitiveness of the Karur Home Textile Industry and help exporters secure larger orders from existing customers while attracting new buyers. It will also increase production, investments, and employment across the textile value chain. It will encourage product diversification and value addition, besides strengthening India's position as a preferred sourcing destination for home textiles in the UK market, he said.

According to the association, the Karur Textile Cluster exports home textile products worth approximately ₹800 crore annually to the UK. With the tariff benefits under the India-UK FTA and the improved competitive advantage, the industry is optimistic that exports to the UK could double to around ₹1,600 crore within the next two years.

The India-UK FTA is therefore expected to be a major growth catalyst for the Karur Home Textile Industry, generating increased exports, higher employment, greater investments, and enhanced foreign exchange earnings, while further strengthening Karur's reputation as a globally recognised home textile capital, it said.