A significant milestone for the apparel industry, the new India-UK Bilateral Trade Agreement will usher in a new era of garment trade with the UK, opines Sudhir Sekhri, Chairman, Apparel Export Promotion Council (AEPC). The FTA will enhance market access, spur investment and job creation in the garment sector, besides creating new opportunities for businesses and consumers on both sides, he adds.

The FTA was signed between India and the United Kingdom during Prime Minister Narender Modi’s visit to the country. It aims to strengthen strategic and economic ties between the two nations, particularly in the garment sector.

The agreement will not only provide competitive market access for Indian apparel products in the UK but also increase the trust and reliability factor by streamlining customs procedures and mutual recognition of standards, thereby, reducing the compliance burdens for the Indian apparel exporters, notes Sekhri,

With duty-free access now in place for most garment products, apparel exports to the UK are anticipated to see a renewed thrust and momentum in coming years, The deal will prove to be a testimony of a shared commitment of deepening cooperation between the two countries, Sekhri emphasizes.

A global fashion hub, the United Kingdom is the world's fifth-largest garment importer, with imports valued at $ 19.7 billion in 2024. With its robust apparel sector, India has historically been a trusted partner for the UK, exporting $1.2 billion worth of garments in 2024 and ranking among the top four suppliers. While India primarily exports cotton-based garments like t-shirts, ladies' dresses, and babywear, the previous duty structure limited its competitiveness in winter wear and man-made fiber (MMF) garments. The FTA is expected to address this imbalance, opening new avenues for Indian exporters.