How Will Tamil Nadu's Karur Textiles Businesses Benefit from the FTA?
Click to start listening
Synopsis
The recent Free Trade Agreement between India and the UK is set to boost exports significantly, especially for Tamil Nadu's textile industry. With duty-free access and a focus on sustainable products, Karur's textile businesses are poised for remarkable growth in the coming years.
Key Takeaways
- FTA provides duty-free access for 99% of India’s exports to the UK.
- Karur's textile sector is set to experience significant growth.
- Projected doubling of textile exports within 5-6 years.
- Employment opportunities and technological advancements expected.
- Comprehensive economic partnership based on trust.
Chennai, July 30 (NationPress) The Free Trade Agreement (FTA) recently signed between India and the United Kingdom (UK) is anticipated to stimulate substantial growth in Indian exports, particularly benefiting the textile manufacturing sectors.
Noteworthy, the FTA, also referred to as the Comprehensive Economic and Trade Agreement (CETA), provides unprecedented duty-free access for 99 percent of India’s exports to the UK. This encompasses labor-intensive sectors such as textiles, leather, marine products, gems and jewellery, and toys, along with high-growth areas like engineering goods, chemicals, and auto components.
Post-FTA, various employment-intensive sectors including textiles, garments, leather goods, engineering products, and jewellery are optimistic about achieving significant advantages due to the incentives and duty-free access to UK markets. The exemption from duties will enhance the competitiveness of Indian products and unlock new opportunities in international markets.
Karur, a prominent textile center in India, is enthusiastic about the growth opportunities on the horizon. Situated in the Tirupur district of Tamil Nadu, Karur is a central player in India’s ready-made garments sector and is expected to see increased demand for sustainable garments and premium products in UK markets.
This shift is poised to result in a notable increase in exports, expansion of investments, and creation of jobs. Furthermore, it will facilitate skills enhancement and technological progress.
Currently, India’s textile and ready-made garments exports to the UK amount to approximately $1.4 billion annually. With the FTA in place, this figure is projected to double within the next 5-6 years.
“The FTA is not merely about boosting trade; it signifies a comprehensive economic partnership founded on trust between the two nations. We express our gratitude to the Prime Minister for successfully finalizing this agreement,” stated Homeline Textile’s Angelina Stephan Babu.
Significantly, the FTA ensures the elimination of tariffs on about 99 percent of tariff lines, encompassing nearly the entire trade landscape of India. This implies that almost all Indian goods such as textiles, leather, marine products, gems and jewellery, toys, chemicals, engineering products, and agricultural products will gain entry into the UK market at zero duty.
Point of View
The recent FTA between India and the UK is a strategic move that promises to strengthen economic ties and provide invaluable opportunities for growth, particularly in labor-intensive sectors like textiles. It is a testament to India's evolving trade relationships and commitment to enhancing its global market presence.
NationPress
31/07/2025
Frequently Asked Questions
What is the Free Trade Agreement (FTA)?
The FTA is a treaty between countries that eliminates tariffs and trade barriers, allowing for increased trade and economic cooperation.
How will the FTA affect Indian textile exports?
The FTA is expected to significantly increase Indian textile exports to the UK by providing duty-free access, making Indian products more competitive.
What benefits does Karur expect from the FTA?
Karur anticipates increased demand for its textiles, leading to boosted exports, more investments, and job creation.
What sectors are likely to benefit from the FTA?
Sectors such as textiles, leather, marine products, and engineering goods are expected to gain considerably from the FTA.
How much does India currently export to the UK?
India exports textiles and ready-made garments worth approximately $1.4 billion annually to the UK.
