<ul><li>India and the UK have entered into an FTA expected to be operational in CY 2026, which is likely to double the apparel and home textiles trade between the two countries in the next 5-6 years.</li><li>The FTA involves India reducing tariffs on 90% of British goods, with 85% becoming completely duty-free over ten years, while Britain will lower tariffs on certain products, resulting in 99% of India's exports to the UK facing zero duties.</li><li>Currently, India is the 12th largest trading partner of the UK and ranks fifth in terms of apparel and home textiles imports. The UK's share of Indian exports is expected to reach 11-12% by CY 2027, reflecting an 11% CAGR between CY 2024 and CY 2027.</li><li>With the elimination of tariffs on 99% of Indian goods, including textiles, it is anticipated that additional capacities will be added in the next 4-5 years to fulfill orders. Post-FTA implementation, India would have a level playing field compared to other duty-free access nations like Bangladesh, Vietnam, and Pakistan.</li></ul>

India-UK apparel, home textiles trade to double in 5-6 years under FTA: ICRA

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