India-UK Trade Pact to Boost Textile Exports, UK Market Share Seen Rising to 15%

Industry projects export growth and market share expansion to 10–15% as India-UK Comprehensive Economic and Trade Agreement (CETA) moves toward implementation.

India’s textile and apparel exporters expect the India-UK Comprehensive Economic and Trade Agreement (CETA) to create new growth opportunities for the sector by supporting higher export volumes and expanding India’s presence in the UK market.

According to industry estimates, India’s apparel and home textile exports to the UK were valued at US$1.8 billion in FY26, representing nearly 5% of the UK market. Following the implementation of the trade agreement, the industry expects double-digit export growth and an increase in India’s market share to 10–15% over time.

The agreement is expected to eliminate tariffs of up to 12% on textiles and clothing and up to 16% on leather and footwear products, improving the competitiveness of Indian exports in the UK.

Industry representatives believe the trade pact will provide a more level playing field for Indian exporters while helping diversify sourcing away from competing markets. The agreement is also expected to strengthen India's export outlook at a time when stability is gradually returning to West Asia, an important transit route for textile shipments.

Prabhu Damodaran, Convenor and Secretary of the Indian Texpreneurs Federation (ITF), said the industry expects double-digit growth in exports and sees the potential for India’s share of the UK market to increase to 10–15% over time.

India exported nearly US$1.8 billion worth of apparel and home textiles to the UK in FY26, accounting for approximately 5% of the market.

The India-UK CETA is scheduled to come into force on July 15. Under the agreement, 99% of India’s exports to the UK will receive zero-duty access, covering nearly 100% of trade value across product categories, including processed foods and marine products. Tariffs on textiles and clothing of up to 12%, and on leather and footwear products of up to 16%, will be removed.

According to estimates by the UK Department for Business and Trade, the FTA is expected to increase UK imports from India by around £2.9 billion. Imports of clothing are projected to rise by £47 million (45%), textiles by £17 million (40%), and footwear by £55 million (30%).