The Apparel Export Promotion Council (AEPC) today welcomed the coming into force of the India–United Kingdom Foreign Trade Agreement (FTA), describing it as a transformational milestone that will significantly strengthen India’s apparel exports, deepen integration with global value chains and reinforce the country’s emergence as a preferred sourcing destination for international brands.
The agreement, effective from 15 July 2026, grants duty-free access to nearly 99 per cent of Indian exports to the United Kingdom, providing a major competitive advantage to India’s labour-intensive apparel sector.
Welcoming the development, Dr. A. Sakthivel, Chairman, AEPC, said:
“The operationalisation of the India-UK FTA is a watershed moment for India’s textile and apparel industry. It will provide Indian exporters with a significant competitive edge in the UK market, enhance market access, attract investments, create employment and strengthen India’s position in global textile and apparel value chains.”
Dr. Sakthivel expressed his gratitude to Hon’ble Prime Minister Shri Narendra Modi for his visionary leadership in expanding India’s global trade footprint and transforming the country into a trusted manufacturing and sourcing hub. He also lauded the dedicated efforts of Hon’ble Union Minister of Commerce & Industry Shri Piyush Goyal and his team for successfully negotiating and operationalising the landmark agreement.
He noted that India’s growing network of recently signed Free Trade Agreements with 38 countries now provides preferential market access to economies accounting for a substantial percentage of the developed world’s GDP, opening unprecedented opportunities for Indian exporters.
“India has entered a new era of trade diplomacy. These agreements are not merely about reducing tariffs—they are about integrating India more deeply into global supply chains and making the country a preferred sourcing destination for international brands looking for resilient, reliable and sustainable manufacturing partners,” Dr. Sakthivel said.
Highlighting India’s inherent strengths, Dr. Sakthivel said the country possesses one of the world’s few integrated fibre-to-fashion ecosystems, spanning cotton cultivation, spinning, weaving, processing and garment manufacturing. This integrated value chain enables Indian exporters to meet Rules of Origin requirements more efficiently while offering greater supply chain transparency, traceability and reliability—attributes increasingly valued by global buyers.
He observed that the global textile and apparel industry is undergoing a structural transformation, with brands diversifying sourcing destinations amid geopolitical shifts, supply chain realignment and evolving sustainability expectations.
“In today’s trade environment, competitiveness extends beyond tariffs. Global buyers increasingly seek suppliers who can demonstrate compliance, sustainability, digital traceability, responsible manufacturing and supply chain resilience. India’s integrated manufacturing ecosystem, coupled with the benefits of the India-UK FTA, positions the country strongly to capture a larger share of global sourcing,” he said.
Dr. Sakthivel added that Government initiatives such as the PM MITRA Parks, Production Linked Incentive (PLI) Scheme, logistics improvements and trade facilitation measures will further enhance India’s competitiveness by strengthening integrated manufacturing, reducing lead times and encouraging greater value addition, particularly in MMF apparel, technical textiles, performance wear and other high-growth product segments.
He said AEPC will continue to work closely with exporters through awareness programmes, capacity building and technical support to ensure the apparel industry fully leverages the opportunities created by the agreement.
“The India-UK FTA is more than a trade agreement, it is a strategic instrument that will reshape sourcing decisions, strengthen India’s role in global value chains and accelerate export-led growth. With our integrated manufacturing capabilities, skilled workforce, sustainability focus and expanding FTA network, India is well-positioned to emerge as one of the world’s most trusted and future-ready apparel sourcing destinations,” Dr. Sakthivel said.
