New Delhi [India], June 24 (ANI): India-UK free trade agreement (FTA) will be a major boost for country’s ready-made garment (RMG) sector, according to report by Intelsense.
The FTA is being seen as a game changer for India’s RMG sector, which accounts for 42.4 per cent of the country’s textile exports.
This deal gives India a 12 per cent duty advantage over China and puts it on equal footing with Bangladesh, which already enjoys duty-free access to the UK market.
The report stated, “India-UK FTA provides a 12 per cent duty advantage over China and brings India at par with Bangladesh. The India-UK FTA is a game changer for India’s RMG sector, creating a level-playing field vis-a-vis key competing nations for accessing the nearly USD 20 billion RMG market of the UK.”
With countries like Bangladesh, Turkey, Cambodia, and Italy having zero tariffs, and Vietnam and Pakistan paying reduced duties, this agreement levels the playing field for India’s ready-made garments (RMG) exports.
India is currently one of the top five textile exporters in the world, with nearly 53 per cent of its exports going to the USA and China.
Exports from the sector are expected to reach USD 100 billion in the coming years. The global textile and apparel trade is also booming, with projections showing it could reach USD 1.2 trillion by 2030.
The global apparel market alone is expected to grow at a rate of 8 per cent annually, reaching around USD 2.37 trillion by 2030. India is the fourth-largest player in the world retail apparel market, with a 6 per cent share, just behind China’s 10 per cent.
India’s home textile industry is also on a strong growth path, expected to grow at a compound annual growth rate (CAGR) of 8.9 per cent, reaching USD 23.32 billion by 2032, up from USD 10.78 billion in 2023. Similarly, the Indian composites market is forecast to grow at a CAGR of 7.8 per cent between 2024 and 2030.
India and China together produce about 50 per cent of the world’s cotton, but India still has room to grow in the export of top cotton products. Experts believe that doubling India’s share in just three key cotton products could bring in an additional USD 1 billion in exports.
The Indian textile and apparel industry currently contributes 2.3 per cent to the country’s GDP and is expected to double its share to about 5 per cent by the end of the decade.
Lower tariffs and paused duties, especially compared to other Asian competitors, position India as an attractive sourcing destination for global brands, particularly those from the US.
As shopping trends show that 79 per cent of fashion sales still happen in stores, and only 21 per cent online (with Asians making the most online purchases at 24 per cent), India’s strong offline retail presence and production strength could drive even more growth. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
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