India–UK FTA Opens New Growth Opportunities for Apparel Exports: AEPC
The Apparel Export Promotion Council (AEPC) has welcomed the implementation of the India–United Kingdom Free Trade Agreement (FTA), calling it a landmark development that is expected to boost India’s apparel exports and strengthen the country’s position as a preferred global sourcing destination.
Effective from 15 July 2026, the agreement provides duty-free access for nearly 99% of Indian exports to the UK, offering a significant competitive advantage for India’s labour-intensive apparel sector.
Dr. A. Sakthivel, Chairman of AEPC, described the agreement as a watershed moment for the textile and apparel industry, stating that it will improve market access, attract fresh investments, generate employment and further integrate India into global textile and apparel value chains.
He also acknowledged the leadership of Prime Minister Narendra Modi and the efforts of Union Commerce and Industry Minister Piyush Goyal in securing and operationalising the agreement.
According to AEPC, India’s expanding network of free trade agreements now covers 38 countries, providing preferential market access to several major economies and creating new opportunities for exporters. Dr. Sakthivel noted that these agreements go beyond tariff reductions by helping India become a more reliable and resilient sourcing hub for international brands.
He highlighted India’s integrated fibre-to-fashion value chain, which spans cotton cultivation, spinning, weaving, processing and garment manufacturing. This ecosystem enables exporters to comply with Rules of Origin requirements while delivering greater supply chain transparency, traceability and reliability.
AEPC also pointed out that global brands are increasingly diversifying sourcing locations due to geopolitical shifts, supply chain realignment and rising sustainability expectations. In this evolving landscape, India’s manufacturing capabilities, sustainability initiatives and trade agreements position the country to capture a larger share of global apparel sourcing.
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 strengthen India’s competitiveness, particularly in man-made fibre (MMF) apparel, technical textiles and performance wear.
AEPC said it will continue supporting exporters through awareness programmes, technical guidance and capacity-building initiatives to help the industry maximise the benefits of the India–UK FTA.