UK FTA Benefits Indian Exporters
Indian textile exporters are currently struggling with the ups and downs of markets around the world. On the one hand, while the expectations of India-UK Free Trade Agreement (FTA) are seen giving them relief, on the other hand, the increasing uncertainty about tariffs in America has increased their concern. If FTA agrees with UK, then Indian textile products will be able to reach the British market without import duty. With this, exporters will not only get cost advantage, but they will also be able to strengthen their hold in the market there. But the real challenge is coming from America.
According to a report by NDTV, a large part of the income of India’s big textile exporting companies comes from the US. Welspun Living earns about 65%, Gokaldas Exports 33%, and Arvind Limited 35% from the US. In such a situation, the instability of America’s tariff policies and the constantly changing trend of rules have shook plans of these companies.
Experts believe that if the situation in America does not improve soon, then Indian companies may have to search for other markets. In such a situation, UK FTA is a positive sign, which can give some relief on tariff shaking received from America, but a big and stable market like America will not be able to be so easily.
New opportunities found in Europe and UK
Welspun Living recently stated on the basis of American retail sales figures that weak demand and uncertainty in trade have affected the thinking of retail companies. At the same time, Gokaldas Exports says that they have strong order books and good customer relationships, so they are not having much trouble at the moment. Despite this, due to tariff pressure, the company is now paying more attention to Europe and UK. Arvind Limited also believes that uncertainty in America may remain for at least one more quarter. Therefore, the company is trying to maintain its connection in America by adopting the roads like air freight by taking additional expenses.
UK FTA has a chance to get an increase in exporters
India-UK Free Trade Agreement (FTA) has removed 12% tax on domestic clothes, which has given Indian exporters a chance to compete with countries like Bangladesh. This is benefiting India as compared to the suppliers of China. Welspun Living has received a good response from the UK market and they see good opportunities for expansion here. Gokaldas Exports has increased its income from Europe to 13.4% in the first quarter of FY 2026 to increase its income from 9% in FY 2025 due to a strong demand for UK. Arvind Limited believes that his UK business may be doubled in the coming years, but it may take about a year to take full advantage.