Overview

• The India-UK Free Trade Agreement, concluded on May 6, 2025, grants zero-duty access to 99% of Indian exports, including ready-made garments (RMG).
• India’s share in the UK’s RMG market, currently at 6%, is projected to rise to 12%, creating an estimated $1.1–1.2 billion in additional annual export opportunities.
• The UK imported $20 billion in RMG in 2024, with China holding 25% of the market and Bangladesh 20%; India, at 6%, currently ranks fourth.
• Indian textiles face structural challenges such as fragmented manufacturing, high logistics costs, and inverted GST on man-made fibers, which must be addressed to maximize FTA benefits.
• The agreement is expected to be formalized in three months, followed by legislative approvals within a year, with a goal of boosting bilateral trade to $120 billion by 2030.