The India–UK FTA also called the Comprehensive Economic and Trade Agreement (CETA) has come into force, scrapping tariffs on 1,143 textile lines exports from India from the 12% import duty enforced earlier.
Now onwards 99% of Indian merchandise entering the UK market and 90% of UK merchandise entering India now qualifies for duty-free or lower tariff.
India supplied around US $1.79 billion of UK’s total imports of textiles and apparel clothing imports totaling $28.8 billion in 2025 and with a market share of around 6%.
In a statement the Indian Ministry of Commerce & Industry expects the tariff change to fortify India’s competitive position against textile and garment manufacturers in Cambodia, Pakistan and Bangladesh, which export duty free textiles and clothing to the UK.
The ministry acknowledged strong potential across garments, carpets, handcrafts and home textiles, with clothing exports expected to receive a significant boost.
Additionally, CETA also streamlines customs procedures and removes mandatory requirements for customs brokers, letting businesses access preferential rates once registered with HMRC in the UK.
Image courtesy: Hyosung
