India-UK FTA to open up incremental export opportunities for Indian textile industry: Ind-Ra

Few days after the finalization of free trade agreement (FTA) between India and the UK, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that this FTA between India and the UK will open up incremental export opportunities for the Indian textile industry.

According to the report, this is specifically for the apparel and home textile sectors, which are also likely to be benefitted from the ongoing tariff by the US on various countries, as India will be taxed at lower rate than its key competing nations as per the current announcement.

The rating agency also noted that Indian textile exports to the UK are charged an import duty of up to 12%, which has been reduced to zero under the FTA. It is expected to significantly expand the export market (potential market of ₹45 billion - 70 billion, assuming a 2%-3% increase in India’s share in the UK’s textile imports) in the long term. India’s imports from the UK, on the other hand, are negligible and hence do not pose a threat to domestic firms.