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India-UK FTA to open new opportunities for textiles, boost footwear exports | Current Affairs | Vision IAS

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India-UK FTA to open new opportunities for textiles, boost footwear exports

2 min read

India-UK Free Trade Agreement (FTA) and Its Impact on Indian Export Sectors

The recently signed India-UK Free Trade Agreement is anticipated to significantly bolster India's labor-intensive export sectors, particularly textiles and footwear.

Impact on Textile and Apparel Industry

  • Industry estimates suggest an additional business of around ₹7,000 crore for the textile and apparel sector.
  • Aims to achieve the 2030 export target of $100 billion.
  • Quoting Rakesh Mehra, chairman of CITI, the FTA could transform the fortunes of the Indian textile sector.
  • Tiruppur Exporters’ Association predicts the UK exports share from the hub could double from ₹5,000 crore to 20% of the total revenue.
  • India aims to boost its UK market share from 6% to 10% in two years, unlocking ₹6,000-7,000 crore in extra business.

India as a Major Textile Supplier

  • India holds a 6.6% share in the UK’s total textile and apparel imports, making it the fourth-largest supplier.
  • The UK imported textile and apparel products worth $27 billion in 2024, with China leading at 25%, followed by Bangladesh and Turkey.

Impact on Footwear Industry

  • The footwear sector, including leather and non-leather products, expects trade to reach $1 billion from $440 million currently.
  • The FTA is beneficial for brands like Clarks, Superdry, M&S, and John Lobb, with Clarks purchasing 8-10 million pairs annually from India.
  • Emphasis on expanding into women's and children's footwear sectors.
  • N Mohan and VKC Razak highlight the potential boost for non-leather companies emerging in Tamil Nadu.

Conclusion

The India-UK FTA is positioned as a strategic move to enhance trade relations, providing duty-free advantages and a significant growth prospect for India's exports in textiles and footwear.

  • Tags :
  • India-UK FTA
  • Textile
  • Footwear
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