INDIA–UK FREE TRADE AGREEMENT SET TO BOOST TEXTILE SECTOR: TEXPROCIL

The Cotton 
Textiles Export Promotion Council (TEXPROCIL) has welcomed the signing of the India–UK Comprehensive Economic and 
Trade Agreement (CETA), calling it a landmark moment for the Indian textile industry. TEXPROCIL Chairman Vijay Agarwal hailed the agreement as a “historic milestone” in the strategic trade partnership between the two nations. Expressing gratitude to Prime Minister Narendra Modi, Agarwal commended the Prime Minister’s visionary leadership, which he said was instrumental in achieving this breakthrough agreement. He also praised the efforts of the Ministry of Commerce and Industry, under the leadership of Union Minister Piyush Goyal, for their commitment to safeguarding and advancing India’s trade interests. TEXPROCIL has committed to working closely with exporters and stakeholders to ensure optimal utilization of the FTA’s provisions. The council believes the agreement will act as a catalyst for employment generation, value chain strengthening, and global competitiveness in India's textile sector.As India aims to become a global textile powerhouse, the India–UK CETA is seen as a timely and strategic move that aligns with the country’s larger trade and economic objectives. “This agreement is poised to significantly enhance bilateral trade, generate employment, and unlock growth opportunities for India’s textile and clothing sector,” Agarwal said.
 KEY BENEFITS UNDER CETA FOR THE TEXTILE SECTOR
 According to TEXPROCIL, the agreement is expected to have a transformative impact on India’s textile exports, particularly in the garments and home textiles categories. “This agreement is poised to significantly enhance bilateral trade, generate employment, and unlock growth opportunities for India’s textile and clothing sector,” Agarwal said.
  HIGHLIGHTS OF THE CETA  AGREEMENT
Zero-duty access has been granted to India’s Textile & Clothing (T&C) sector, placing 
it on par with competitors such 
as Bangladesh, Pakistan, Vietnam, and Turkey. 
The sector is expected to grow 
by 10–12%, 
up from the current growth rate of 6.6%, 
over the next 3 years following the agreement’s enforcement. Textile trade (including garments 
and home textiles) is projected to double 
from USD1.4 billion to USD 3 billion in the 
next 3 years. India’s market share in the UK’s 
T&C segment is expected to increase from 
the current 6% to at least 12% in the next 3 to 5 years.