India's textile sector has received a major boost with the signing of the 2025 Free Trade Agreement between India and the United Kingdom. This landmark deal removes tariffs ranging from 8 to 12 percent on Indian exports of Clothing and Home textiles to the UK. With duties phased out on nearly 99 percent of textile and apparel tariff lines, Indian products are now set to become significantly more competitive in the global market.

Export hubs like Tiruppur, Ludhiana, and Surat are expected to witness growth of up to 40 percent over the next three years. With zero duties now applicable on garments such as shirts, trousers, dresses, and bed linens, Indian manufacturers see new opportunities in one of the world’s most fashion-conscious and sustainability-focused markets.

India, the second-largest textile exporter globally, employs over 45 million people in the sector. As the UK continues to import a majority of its textiles, Indian firms are gearing up to meet rising demand with improved efficiency, design innovation, and sustainable practices.

Textile companies such as Sanathan Textiles anticipate strong gains, particularly in polyester filament yarn. The broader industry is forecasting a 30-45 percent rise in exports to the UK by 2030. With improved price competitiveness, Indian exporters are expected to expand their reach in the UK market, which demands not only affordability but also traceability, faster delivery, and alignment with ESG norms.

This trade agreement is not just a policy change; it is a strategic gateway for Indian textiles to strengthen their global footprint while meeting evolving market standards.