Textile Exports To Double Under India-UK Trade Pact

India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA), India’s most ambitious free trade pact with a major developed nation in over a decade. The agreement was signed yesterday by India’s Commerce and Industry Minister Piyush Goyal and the UK’s Secretary of State for Business and Trade Jonathan Reynolds, in the presence of Prime Minister Narendra Modi and UK Prime Minister Keir Starmer.

The CETA marks a significant milestone in India’s engagement with the global economy, strengthening trade, investment, and innovation partnerships between two of the world’s largest economies. As of 2025, India and the UK together account for nearly US$ 56 billion in bilateral trade, with an ambitious goal of doubling this figure by 2030. The agreement is expected to boost annual trade by an additional US$ 34 billion, opening new avenues for exports, job creation, and sustainable development across a range of sectors.

A major highlight of the agreement is duty-free access for 99% of Indian products entering the UK market, covering nearly 100% of trade value. Labour-intensive sectors such as textiles, garments, footwear, marine products, toys, leather, sports goods, and gems and jewellery are expected to benefit enormously. Textile exports, currently valued at US$ 1.71 billion (6% of the UK market share), are projected to double to 12%, unlocking an additional US$ 1.1–1.2 billion in value. The removal of 8–12% import duties will significantly boost competitiveness for India’s key manufacturing hubs.

Vijay Agarwal, Chairman, TEXPROCIL

Reacting to this development, TEXPROCIL Chairman Vijay Agarwal hailed the agreement as a “historic milestone in the strategic partnership between the two nations”. He expressed gratitude to Prime Minister Modi for his visionary global leadership and praised the Ministry of Commerce and Industry under the leadership of Piyush Goyal for safeguarding and advancing India’s trade interests. He added, “The Council remains committed to working closely with member exporters to ensure optimal utilisation of the FTA’s benefits. This Agreement is poised to significantly enhance bilateral trade, generate employment, and unlock tremendous growth opportunities for India’s Textile and Clothing sector.”

Sudhir Sekhri, Chairman, AEPC

AEPC Chairman Sudhir Sekhri echoed similar sentiments stating, “The signing of the landmark India-UK Bilateral Trade Agreement marks a significant milestone in strengthening strategic and economic ties. This deal will usher in a new era of garment trade with the UK, enhance market access, spur investment, and generate jobs in the garment sector, while creating new opportunities for businesses and consumers on both sides.”

The deal also promotes collaboration in strategic and innovation-led sectors. The UK-India Technology Security Initiative and planned Industrial and Tech Corridors will boost cooperation in advanced materials, high-performance fibres and critical technologies.

Abani K. Jha, Co-Chair, National Council for CFOs, ASSOCHAM

Abani K. Jha, Co-Chair, National Council for CFOs, ASSOCHAM, described the agreement as a watershed moment in global economic diplomacy and said, “This landmark agreement signals a bold new era. It will unlock immense opportunities for investment, innovation and job creation across textiles, pharmaceuticals, electronics, financial services, and green technologies.”

India’s services sector, a vital engine of growth, will also benefit from liberalised market access in areas such as IT and IT-enabled services, legal and financial services, education, and digital trade. The agreement simplifies visa procedures and expands mobility options for Indian professionals including engineers, architects, chefs, yoga instructors, and musicians under liberalised entry categories.

Further boosting India’s competitiveness abroad, the agreement introduces a Double Contribution Convention, under which Indian professionals and their employers will be exempt from UK social security contributions for up to three years.

Vijay Sankar, Vice President, FICCI

FICCI Vice President Vijay Sankar welcomed the move, stating, “Today’s signing of the India-UK FTA is a major step towards enhancing India’s global market share in exports of goods and services. It will deepen our economic relations with the UK, with greater market access, enhanced investment, and new partnerships. This will undoubtedly contribute to the success of Make-in-India and the vision of Viksit Bharat.”

The agreement has also been lauded for its inclusive framework. It promotes market access for MSMEs, women and youth entrepreneurs, farmers, and fishermen, while addressing contemporary trade issues such as intellectual property rights, government procurement access, and sustainability standards.

Rajiv Memani, President of CII

Rajiv Memani, President of CII, remarked, “We commend the Government of India for entering into this transformative economic treaty. The FTA will not only benefit large industries but also empower our MSMEs by improving access to global markets. CII will conduct outreach sessions in India and the UK to highlight the provisions and benefits of the FTA.”

Concluding the announcement, Union Minister Piyush Goyal said, “This CETA unlocks tariff-free access for 99% of Indian exports to the UK and provides ambitious commitments across goods and services. It enhances talent mobility and reduces trade costs while safeguarding India’s core interests. This is a catalyst for inclusive, innovation-driven growth that will benefit every segment of our economy from farmers and artisans to startups and global enterprises.”

With CETA, India and the UK have entered a bold new phase of economic cooperation, laying the foundation for a resilient, high-growth, and inclusive trade relationship that will endure for decades to come.