Currently, the UK levies a 12% duty on ready-made garments made in India. This could potentially become zero after the implementation of the FTA. This is according to a report by Care Edge Ratings. They expect that India’s share could go up as much as 12 percent in the near-term once the FTA comes into effect.

As per available data,, in 2024, the United Kingdom imported ready-made garments worth about $20 billion, says the Care Edge report. With a 25 percent share in total imports, China is the biggest exporter of RMG to the United Kingdom.

Bangladesh is the second-largest RMG exporter to the UK with a share of about 20 percent. India ranks 4th after Turkey, which has a 7.9 percent share, among the top RMG exporters to China. Currently, India has a 6 percent share in the total ready-made garment imports of the United Kingdom.

The 12 percent duty in UK has been one of India’s biggest challenges and roadblocks. Meanwhile, its competitors, Bangladesh, Turkey, Vietnam, and Italy, have duty-free access to the United Kingdom’s ready-made garment market.

As a result, the proposed Free Trade Agreement will pave the way for Indian manufacturers to get a level playing field with other global competitors.. It will also give India an advantage over China, which also has to pay duties in the UK.