India's textile exports to UK to jump from $1.5bn to $5bn after FTA: Union Minister Giriraj Singh

Union Minister Giriraj Singh at Powering Bharat Summit

India is poised to see a sharp rise in textile exports to the United Kingdom following the signing of a Free Trade Agreement (FTA), Union Textiles Minister Giriraj Singh said on May 16.

“We expect to increase textile exports to the UK from USD 1.5 billion to USD 5 billion. The increase is expected to be quick and not gradual,” Singh said while speaking at Moneycontrol’s Powering Bharat Summit 2025.

He credited the expected jump in exports to the tariff reduction under the FTA and highlighted how competitors like Bangladesh and Vietnam gained an edge in the global textiles market by entering into similar free trade arrangements.

Earlier this month, India and the UK concluded a Free Trade Agreement (FTA), the first major pact between the two nations after US President Donald Trump's policy on tariffs threatened to upend global commerce. The FTA eliminates the existing 12 percent tariff on Indian textile exports to the UK. This zero-duty access is expected to significantly enhance the price competitiveness of Indian products in one of its key markets.

The India-UK FTA marks a major milestone in bilateral trade relations. It is the first comprehensive agreement signed between the two countries after years of negotiations, and comes at a time when India is actively seeking to diversify its export markets and reduce tariff barriers through bilateral trade deals.

Singh also emphasised India’s strength in the textile value chain. “India has end-to-end solutions in textile,” he said, adding that the government is committed to meeting the clothing needs of the country’s growing population.

Referring to criticism from opposition parties, Singh remarked, “I was asked by the Opposition what are you doing. I said it is my aim that even you all don’t remain naked. I am providing clothes to the entire nation.”

Addressing concerns over competition from nations like Bangladesh and Vietnam, Singh said India has the required infrastructure, investment support, and workforce. “Prime Minister Narendra Modi has ensured sufficient investment in the textile sector. There is no shortage of labour force in India,” he said.

The new FTA is expected to not only benefit Indian exporters but also help boost employment in the textile clusters across states.