Textile exports to UK under FTA may offset US losses, says CareEdge

The losses faced by Indian textile exporters due to steep reciprocal tariffs imposed by the United States may be cushioned by rising shipments to the United Kingdom under the recently concluded India-UK Free Trade Agreement (FTA), said CareEdge Ratings in a report. The ratings agency noted that ongoing negotiations with the European Union could further open new avenues, marking a strategic realignment of India’s textile trade landscape. Calling the India-UK FTA a game changer for the readymade garments and home textile sectors, the report said the deal creates a level-playing field for Indian exporters in the $23 billion UK import market. Mr Krunal Modi, Director at CareEdge Ratings, said government support measures—including the removal of 10% import duty on cotton until December 31, 2025, export incentives, interest subsidies and outreach to 40 new markets—will help bolster competitiveness, as per a report.

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