Archive · 25 Jul 2025
Duty Concessions Alone Unlikely to Boost Indian Textile Exports
Imagine India and the UK made a deal to make it easier for India to sell clothes to the UK.
This means lower taxes on clothes coming from India.
But, it's not a guaranteed win.
Other countries like China, Bangladesh, and Turkey already sell lots of clothes to the UK.
China sells a lot of clothes even with high taxes because their clothes are cheap.
For India to sell more, they need to make clothes that people want to buy and keep costs down.
Just getting rid of the taxes isn't enough!
India-UK trade deal eliminates tariffs on textiles, footwear, and gems/jewelry.
China holds over 25% of UK's ready-made garment (RMG) imports despite tariffs.
India's share in UK RMG imports is only 6%, exporting $1.2B worth of RMG.
Competitors like Bangladesh and Turkey have zero-duty access to the UK market.
India has struggled to increase market share in the past with FTAs, due to issues like quality and cost.
- Who
- India's textile industry, along with competitors such as China, Bangladesh, and Turkey.
- What
- The challenges faced by India's textile industry in the UK market after a trade deal that reduces tariffs.
- When
- The India-UK trade deal was signed recently, extending benefits to sectors like textiles.
- Where
- The United Kingdom (UK) and India.
- Why
- Because even with reduced tariffs, India faces challenges in increasing its market share due to existing competition, quality and cost issues.
Potential Benefits
Existing Hurdles
Tariff Reduction
Potential Benefits
Eliminating tariffs on textile imports from India.
Existing Hurdles
Doesn't guarantee increased market share due to competition.
- Trade Deal Benefit
- Tariff elimination on textiles for India.
- China's UK RMG Market Share
- Over 25%.
- India's UK RMG Market Share
- 6%.
- India's RMG exports to UK
- $1.2 billion.
- Bangladesh's UK RMG Market Share
- 20%.
- India's textile market share in 2000
- 26%