Synopsis Commerce and Industry Minister Piyush Goyal is scheduled to meet with Export Promotion Councils (EPCs) on May 8 to discuss the free trade agreement with the UK. The landmark deal aims to eliminate taxes on key Indian exports like leather and clothing, while reducing tariffs on UK imports such as whisky and cars. Commerce and Industry Minister Piyush Goyal will meet representatives of export promotion councils (EPCs) here on May 8 to discuss matters related to the free trade agreement with the UK, an industry official said on Wednesday. India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030.
The world's fifth and sixth-largest economies concluded the deal after three years of on-and-off negotiations. The pact lowers tariffs on 99 per cent of Indian goods to zero in the UK market while allowing Indian workers to travel to the UK for work without changing Britain's point-based immigration system.
Taxes on the export of Indian clothing, frozen prawns, jewellery and gems will be cut. And so will be the import of whisky and gin from the UK after the treaty halved the tariff to 75 per cent initially and to 40 per cent by the 10th year. The official said that all the senior representatives of EPCs and Federation of Indian Export Organisations (FIEO) will participate in the deliberations, besides senior officials of the ministry.
Source: The Economic Times
Synopsis Experts believe the India-UK free trade agreement, eliminating tariffs across sectors, will significantly boost bilateral trade and expand consumer markets. The deal, removing taxes on labor-intensive exports and easing imports, aims to double trade to USD 120 billion by 2030. It provides opportunities for businesses to access a combined market of USD 6.08 trillion and diversify services exports. Import duty relaxations and eliminations across various sectors under the India-UK free trade agreement will boost bilateral trade and expand consumer markets in both countries, experts said on Wednesday. India and the UK on Tuesday clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030
According to experts, the pact was announced at a critical juncture when the global trade is facing uncertainty due to US tariff policies. "Tariff relaxations and eliminations coupled...across sectors would not only enhance the bilateral exports but also open up consumer market on both sides especially amidst the market sentiment due to recent tariff announcements. by the US," Krishan Arora, Partner, Leader - India Investment Roadmap, Grant Thornton Bharat, said. International trade expert and Hi-Tech Gears Chairman Deep Kapuria said India and the UK are the 5th and 6th largest economies of the world, respectively, and their integration through trade deal would provide an opportunity to the businesses of two countries to access a market of USD 6.08 trillion, the combined GDP of two nations. "The trade deal, besides opening enhanced market access for Indian products from labour-intensive sectors, would also provide newer opportunities to diversify services exports," he said. Kapuria added that the easing of mobility of professionals and commitments on digitally delivered services can facilitate India's services export to UK across sectors. Rishi Shah, Partner and Economic Advisory Services Leader, Grant Thornton Bharat, said that the deal's success will ultimately depend on implementation and whether Indian businesses can leverage new market access while navigating competitive pressures from UK imports. Nirmal Jain, Founder, IIFL Group, termed it as a game-changing FTA. "Zero-duty access for 99 per cent of our exports, big wins for services, 3-year social security exemption for professionals, boosts for India's competitiveness, MSMEs, deepens global value chain integration," Jain said. Praveen Someshwar, MD & CEO, Diageo India, said the treaty will enable improved accessibility and choice of scotch for the Indian consumers, the largest and most exciting whisky market. Anurag Sehgal, Managing Director, Price Waterhouse & Co LLP, said that the deal can thus be a solid template for ongoing negotiations with the US and the EU.
Source: The Economic Times
Synopsis India's finance ministry has unveiled a draft climate finance taxonomy framework to guide investors toward sustainable activities aligned with national climate goals. The framework proposes a phased implementation, starting with qualitative criteria and later incorporating quantitative benchmarks. The finance ministry Wednesday released a draft climate finance taxonomy framework that would help investors identify activities consistent with India's climate action goals and transition pathway and facilitate greater resource flow for sustainable technologies and activities.
The framework suggests a "hybrid approach", comprising both qualitative and quantitative taxonomy aspects, be implemented in a phased manner. It would start with setting qualitative criteria for a broad taxonomy framework that is aligned with national priorities, such as inclusive growth, net zero by 2070 target, developed India by 2047 goal and sector-specific lowcarbon pathways while ensuring long-term access to reliable and affordable energy.
Subsequently, quantitative emission thresholds and benchmarks will be incorporated over time, as appropriate, as per the draft. Taxonomy for climate finance refers to standardised regulations that would guide investors about sustainable investments. The budget had proposed the introduction of such a framework.
Source: The Economic Times
Synopsis The landmark Free Trade Agreement (FTA) eliminates existing tariffs on textile trade between the two countries. As per an Elara Capital report, textiles and apparel trade is at $1.42 billion, with India exporting nearly the entire quantum. Mumbai: Shares of textile companies and garment makers surged Wednesday on expectations the bilateral trade deal with the UK will help expand the shelf presence of Indian brands in British retail outlets that currently source significantly more from low-cost producers such as Bangladesh. The landmark Free Trade Agreement (FTA) eliminates existing tariffs on textile trade between the two countries. As per an Elara Capital report, textiles and apparel trade is at $1.42 billion, with India exporting nearly the entire quantum.
Source: The Economic Times
Shri Anil Rajbanshi has been appointed as the new Vice Chairman of MATEXIL (Man-Made and Technical Textiles Export Promotion Council). MATEXIL is a leading Export Promotion Council dedicated to enhancing exports of Man-Made Fibre Textiles, including fibre, yarn, fabrics, made-ups (including home textiles), and Technical Textiles. Rajbanshi is currently serving as President of M/s. Reliance Industries Limited, a position he has held since 2004. Earlier in his career, he was associated with the Birla Group from 1975 to 1977. His extensive involvement in the Indian man-made fibre textile industry and his association with the National Committees on Textiles of both CII and FICCI reflect his commitment to the sector. He has also served as a member of the Textiles Committee.
"Man-made Fibre Textiles is the future, and I look forward to contributing to the growth of this sector," Rajbanshi stated. Commenting on his appointment, Shaleen Toshniwal, Chairman of MATEXIL, said,"Shri Anil Rajbanshi possesses in-depth knowledge of the Man-Made Fibre Textiles sector, and his vast experience will undoubtedly strengthen the functioning and initiatives of the Council.
Source: ANI News
Following the free trade agreement (FTA) announcement, Indian textile exporters are optimistic, with several players projecting a 10–15 per cent increase in export volumes. Currently, India’s textile exports to the UK are valued at $1.3 billion annually. According to Wazir Advisors, China accounts for 24 per cent of the UK’s $24 billion textile import market, while Bangladesh contributes around 19 per cent. “While the UK is a smaller market compared to the EU or the US, it is still a significant one. With this FTA, Indian exporters will enjoy a 10–12 per cent cost advantage over competitors,” said Rahul Mehta, Chief Mentor at the Clothing Manufacturers Association of India (CMAI) and Director at Creative Group of Companies. “What we need to assess carefully now is our capacity- both in terms of production and the product profile to handle the potential increase in business.”
Echoing this optimism, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, said that the FTA will enhance pricing competitiveness, allowing Indian exporters to offer more attractive prices or improve margins depending on market dynamics. “Given India’s strong cotton ecosystem, we can leverage that in the short term to take market share from Bangladesh, which currently sends about 60 per cent of its UK textile exports as cotton-based apparel.” He added that in the long term, India can gain ground in the man-made fibre (MMF) category, where China currently dominates UK-bound exports. Ganapathi also noted that made ups (home textiles), footwear, carpets, and marine products are among the key categories expected to benefit from the tariff removal. The removal of tariffs under the FTA is expected to lower costs and make Indian goods more competitive, especially when compared to rivals like Bangladesh, where duties still apply. “This gives us a natural advantage,” said Ankit Jaipuria, Co-founder of ZYOD. He also noted that India is well-positioned to cater to growing UK demand for sustainable and eco-friendly textiles, projected to rise 8–10 per cent annually. A Vijay Anand, CEO of Knit Gallery, added that the company plans to ramp up volume with existing UK clients and expand its market focus in the UK. “We’ve already been in touch with our buyers. There’s a lot of potential, and we’re planning to capitalise on it immediately,” he said.
Risk of cross dumping
On potential concerns about cross dumping, Mehta said, “Considering the opportunity, UK buyers will take India seriously as a sourcing destination. UK-made garments being dumped in India is unlikely as they’re generally high-priced. Most of the UK’s production happens outside the country anyway.” He added that what India must watch closely is the rules of origin. “We need to ensure that UK traders don’t import cheap goods from China or Bangladesh and reroute them into the Indian market under the FTA umbrella. That’s where strict monitoring is essential.” The stock market responded strongly to the news. Shares of Gokaldas Exports surged by 11.74 per cent on the BSE, Himatsingka Seide rose 9.05 per cent, Welspun climbed 11.98 per cent, Arvind Ltd increased 2.69 per cent, and Vardhman Textiles was up 4.66 per cent.
Source: Fibre2fashion
Australian multi-channel retailer City Chic Collective Limited has proactively accelerated the shipment of its Summer 2025 collection and a significant portion of its Winter 2026 range to the US, in response to the US government's recent announcement of steep global tariff increases. US contributes around 20 per cent to City Chic Collective’s overall revenue, and more than 90 per cent of its product sourcing originates from China. The new measures significantly impact products manufactured outside the US, with Chinese imports facing particularly steep increases. This forward-planning move ensures that City Chic has ample pre-tariff inventory to maintain uninterrupted operations through the second quarter of FY26. This cushion provides vital time to evaluate long-term sourcing and pricing strategies amidst ongoing trade uncertainties, City Chic said in a press release.The group is actively working with its suppliers to manage the existing order pipeline and has, for the time being, paused all further stock entering the US market. Marketing spend has also been reduced to baseline requirements. Due to the tariff situation and its potential impact on consumer demand, US sales expectations have been reduced for FY26.
Pleasingly, with its predominantly variable cost structure, and a further $1.5 million in fixed cost reductions, it is anticipated that this approach will help enable the business to maintain a neutral contribution margin in the short term, while also unlocking a material portion of cash tied up in working capital through the sell-down of pre-tariff inventory.
The City Chic management team is monitoring all peer retailers in the US that source product from China, many of which are anticipating or already implementing price increases. While the group will continue to closely monitor market developments, in the current economic climate it does not believe that it will be feasible to raise prices sufficiently to entirely offset tariffs in the US without materially impacting demand.
Given the ongoing economic uncertainty and the fluid nature of tariff negotiations, it is currently not possible to reliably estimate the impact on US revenue for the remainder of FY25. However, if these conditions persist in the medium to long term, the group has begun discussions with suppliers to explore further mitigation strategies. Owing to recent business restructuring and a flexible cost base, it retains the ability to exit the US market at minimal cost should the tariff environment prove commercially unviable, added the release.
Source: Fibre2 Fashion
The India-UK Free Trade Agreement is set to eliminate import duties on Indian goods in sectors like apparel and leather, boosting competitiveness against nations like Bangladesh and Vietnam. This agreement is expected to significantly increase exports in various sectors, including woven apparel projected to reach USD 1.6 billion by 2027. The removal of import duties on a range of Indian goods in labor-intensive sectors such as apparel, clothing, and leather under the free trade agreement with the UK will boost the competitiveness of domestic players in the British market against countries like Bangladesh and Vietnam, exporters say. They also said that the Free Trade Agreement (FTA) has eliminated or significantly reduced tariffs on a wide range of Indian goods, which would give domestic exporters preferential access to one of the world's most affluent and consumption-driven markets.
"Removal of tariffs will enhance India's competitiveness against countries like Bangladesh and Vietnam," Federation of Indian Export Organisations (FIEO) President SC Ralhan said. Sharing similar views, A Sakthivel, Vice Chairman of the Apparel Export Promotion Council (AEPC) said that by unlocking new export opportunities, reducing trade barriers, and enabling greater access to the premium UK market, this agreement promises to empower Indian weavers, manufacturers, and exporters across the value chain. "The India-UK FTA is expected to pave the way for long-term growth, attract investment, and create a more favourable business environment for textile stakeholders in both countries," Sakthivel said. Sectors such as woven and knitted apparel, made-ups, footwear, carpets, and marine products will become more competitive in the UK market. Products, like woven and knitted apparel, made-ups, footwear, carpets, and marine goods, will now enter the UK market with tariff advantages ranging from 5-9 per cent. from India to the UK, is projected to grow to USD 1.6 billion by 2027. Similarly, knitted apparel exports could rise from USD 654 million to USD 1.13 billion, while made-ups are expected to jump from USD 276 million to USD 477 million. Other sectors are also poised for growth due to duty cuts. Footwear exports are projected to increase from USD 279 million to USD 545 million, carpets from USD 102 million to USD 185 million, and marine products from USD 107 million to USD 185 million. Even in more industrial categories, auto components and vehicles could double from USD 286 million to USD 572 million, thanks to an 8 per cent tariff advantage. Similarly, aluminium and its products may grow from USD 102 million to USD 200 million by 2027, and organic chemicals from USD 420 million to USD 966 million. Gautam Hari Singhania, Chairman, Raymond Group said such agreements are vital for integrating India more deeply into resilient global value chains, strengthening the country's position as a trusted manufacturing and export partner on the world stage. India and the UK clinched a 'landmark' trade deal that will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030. The world's fifth and sixth-largest economies concluded the deal after three years of on-off negotiations.
Source: The Economic Times
