The Ministry of Commerce and Industry convened a key stakeholder meeting in New Delhi to discuss the potential and strategies for leveraging the India–United Kingdom Comprehensive Economic and Trade Agreement (CETA). The discussions were centred around the textiles, leather, and footwear sectors—three major contributors to India’s labour-intensive manufacturing and export ecosystem.

Union Minister Mr. Piyush Goyal underlined the transformative power of the agreement, particularly for Micro, Small, and Medium Enterprises (MSMEs) and traditional Indian manufacturers. He stressed that CETA removes long-standing trade barriers, especially tariffs that had previously restricted Indian access to the UK’s lucrative market.

CETA eliminates import duties on Indian textiles and leather goods exported to the UK—earlier facing up to 12% duty disadvantages. This breakthrough is expected to significantly enhance price competitiveness, giving Indian manufacturers an edge in the £8.7 billion (₹75,524 crore) UK leather and footwear market.

Key speakers included Commerce Secretary Mr. Sunil Barthwal, who spoke about the inclusive benefits of this agreement. He pointed to MSME empowerment, employment generation, and increased competitiveness as pivotal outcomes. Institutional stakeholders such as the Council for Leather Exports (CLE), Confederation of Indian Industry (CII), and other Export Promotion Councils also participated.

The agreement is projected to double India’s leather and footwear exports to the UK—from ₹4,288 crore (US$ 494 million) in 2024 to ₹8,681 crore (US$ 1 billion) by 2027. The textile hubs of Tirupur, Surat, Jaipur, Ludhiana, Panipat, Moradabad, and Bhadohi are expected to see massive growth in exports. These clusters, home to millions of artisans and workers, will benefit from enhanced visibility, reduced costs, and faster market access.

Moreover, the agreement strengthens the international recognition of Indian Geographical Indication (GI) products, such as Kolhapuri footwear and Mojari, in global markets. These products, steeped in India’s cultural heritage, will now enjoy wider outreach and brand value in the UK.

Beyond market access, the CETA supports sustainable production practices, promotes digital adoption, and encourages alignment of technical standards, making Indian goods more compliant and appealing to global buyers.

Complementing CETA’s implementation is the Indian Footwear and Leather Development Programme (IFLDP), with an outlay of ₹1,778 crore (US$ 204.80 million). This initiative focuses on:

• Modernising manufacturing infrastructure,

• Encouraging innovation,

• Training workforce, and

• Strengthening global branding for Indian leather and footwear.

Sustainability and technical compliance were also highlighted, especially for MSMEs. The government has reiterated its commitment to helping smaller enterprises adopt cleaner technology, meet international benchmarks, and digitally transform.

Officials from the Ministry of Textiles and the Department for Promotion of Industry and Internal Trade (DPIIT) also participated, ensuring a cross-sectoral push. These departments will collaborate to ensure the synergies between policy frameworks, ease of doing business, and international competitiveness.

Going forward, the Ministry of Commerce has planned follow-up consultations with local industry bodies and export councils. These interactions will help explain how MSMEs and exporters in textile and leather clusters can take full advantage of the CETA benefits. Support will also be extended in areas like customs facilitation, quality certifications, and digital paperwork for smoother bilateral trade.

The CETA discussions come at a time when India is actively expanding its trade network, pursuing agreements with various countries to integrate better into global supply chains. The India-UK CETA, in particular, marks a strategic shift, enabling Indian exporters to strengthen ties in the European market post-Brexit.

Industry leaders welcomed the move, terming it “game-changing” for the Indian export ecosystem. With reduced costs, better margins, and simplified logistics, manufacturers foresee long-term benefits, including expanded product lines, greater investment in R&D, and more direct connections with UK retailers and distributors.

In conclusion, the India-UK CETA has been received positively by all stakeholders. It promises not only to boost India’s exports in traditionally strong sectors like textiles and leather, but also to redefine India’s trade diplomacy. As implementation gains momentum, the government has assured continuous engagement with exporters to ensure maximum and equitable benefit across industries and geographies.

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