New Delhi: Credit rating agency ICRA has predicted India’s apparel and home textiles trade with the United Kingdom to witness significant growth and volumes expected to double over the next five to six years, as the two countries finalise the Free Trade Agreement (FTA).
The FTA is expected to be implemented in calendar year (CY) 2026, subject to legal review.
”India’s apparel and home textiles trade with the UK is expected to double from its current levels in the next 5-6 years, owing to the recently concluded FTA between India and the UK,” ICRA report stated.
Following three years of negotiations, the India–UK Free Trade Agreement (FTA) was finalised on May 6, 2025. The FTA has been sealed as the economic relations between India and the UK continue to grow. The bilateral trade of about USD 60 billion between the two nations is projected to double by 2030.
“The FTA ensures comprehensive market access for goods, across all sectors, covering all of India’s export interests. India will gain from tariff elimination on about 99 per cent of the tariff lines covering almost 100 per cent of the trade value offering huge opportunities for increase in the bilateral trade between India and the UK,” the Union Ministry of Commerce & Industry stated in its release.
The Indian government has maintained that the FTA will open up massive export opportunities for labour-intensive sectors such as organic chemicals, gems and jewellery, leather, footwear, sports goods and toys, textiles, marine products, and other important sectors such as engineering goods, and auto parts and engines.
The India-UK Free Trade Agreement (FTA), finalized in May 2025, is poised to significantly boost bilateral trade, particularly in apparel and home textiles. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
