The India-United Kingdom Free Trade Agreement (FTA) has provided a significant advantage to Indian exporters, with Gokaldas Exports Ltd. highlighting a 12% duty edge that could reshape the country’s textile and apparel trade with the U.K. The company, one of India’s leading apparel exporters, noted that while short-term global trade uncertainties persist, particularly due to U.S. tariff policies, the long-term opportunities presented by the India-UK pact are substantial.

According to Rajesh Bheda, CEO of Gokaldas Exports, the agreement eliminates or reduces tariffs for Indian textile and garment products, giving them an upper hand over global competitors in the British market. “The India-UK FTA offers Indian exporters a clear 12% duty advantage, and this will significantly improve our price competitiveness in the U.K.,” he said.

The U.K. is one of the largest importers of readymade garments and textiles, and Indian exporters have long sought preferential trade access. With this FTA, Indian products such as apparel, fabrics, and home textiles will become more competitive compared to exports from countries without such agreements. This could open new growth avenues for India’s garment sector, which has been under pressure from Bangladesh, Vietnam, and China in global markets.

While short-term challenges remain due to inflationary trends, reduced demand, and uncertainties around U.S. tariff policies, Gokaldas Exports is positioning itself strategically. The company has adopted an agile supply chain, diversified product portfolio, and strong partnerships with global retailers, which are expected to mitigate risks and help it seize emerging opportunities.

Industry experts point out that the India-UK FTA is not only beneficial for apparel and textiles but also for other sectors such as pharmaceuticals, IT services, gems and jewellery, and auto components. However, for India’s garment industry, where margins are often slim, a 12% duty cut could be the game-changer needed to capture larger market share.

The FTA also reflects the strengthening trade relationship between India and the U.K., which has been steadily progressing in recent years. For India, the agreement is part of a larger strategy to secure favourable trade terms with major economies, diversify its export markets, and reduce dependency on the U.S.

Meanwhile, Gokaldas Exports has reiterated its focus on sustainability and innovation, which are increasingly becoming critical for securing long-term contracts in global markets. With British consumers showing preference for sustainable and ethically sourced apparel, Indian exporters see an opportunity to align with this demand and consolidate their market position.

The coming months will be crucial for assessing how quickly Indian exporters can translate this FTA-driven duty advantage into increased volumes and revenue. As global trade continues to shift due to geopolitical tensions and tariff wars, agreements like the India-UK FTA are expected to serve as important growth drivers for Indian companies like Gokaldas Exports.

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