India’s apparel exports to the United Kingdom are expected to more than double within three years, driven by the India-UK free trade agreement (FTA), according to Harish Ahuja, Chairman of Foreign Trade at FICCI and Managing Director of Shahi Exports.
Speaking to CNBC-TV18, Ahuja said the FTA marks a turning point for India’s textile and apparel industry by putting it on equal footing with global competitors like Bangladesh and Vietnam, which already enjoy zero-duty access to the UK. “Now we’re on a level playing field with them. This opens up a huge market, especially for India’s apparel sector,” he said.
With nearly 90% of raw materials sourced domestically, India offers significant value addition in exports. Ahuja noted that the trade deal will help formalise jobs for unorganised workers, especially in rural areas. “Our economy depends heavily on agriculture, so this helps bring unorganised sector workers into the organised apparel trade,” he explained.
Buyers in the UK are already responding, Ahuja said, with a surge in inquiries and long-term sourcing plans. “Most customers prefer India because of our democratic system and strong labour laws. They see India as a very sustainable sourcing destination,” he added.
He pointed out that while the full impact of the FTA will take 8-12 months to play out, the industry is already witnessing a rise in interest. “We’re expecting that within a span of three years or so, our exports should more than double,” he said.
ALSO READ | India-UK free trade pact opens doors for apparel, auto parts, processed foods: Industry leaders
Ahuja also highlighted that Indian exporters are ramping up capacity in anticipation of rising demand, noting that his own company is expanding at 15% annually. “Most countries — especially the US — have started viewing China as no longer the final hub for all manufacturing… At the moment, India is the best available option for apparel manufacturing,” he said.
Watch accompanying video for entire discussion.
