CHENNAI: The recent signing of a Free Trade Agreement (FTA), known as the Comprehensive Economic and Trade Agreement (CETA), between India and the United Kingdom is poised to bring transformative opportunities for Indian exporters, especially in the textile and handloom industries.
One of the most exciting aspects of the FTA is the granting of duty-free access to a remarkable 99 per cent of India’s exports to the UK. The agreement covers a large range of products, from traditional labour-intensive items such as garments, textiles, leather, marine produce, jewellery, and toys, to high-growth, modern sectors including engineering goods, chemicals, and automotive components.
With these sweeping duty exemptions, Indian products can now enter the UK market on a much more competitive footing, fuelling new trade possibilities and encouraging sector-wide growth.
This is particularly good news for employment-driven sectors like textiles, garments, leather goods, and jewellery, which are predicting considerable gains. The elimination of tariffs is expected to make goods from these sectors more appealing to UK importers, opening fresh avenues for expansion. The added competitiveness is already generating a wave of optimism among manufacturers and exporters.
Fresh investments to pour in
Karur, a thriving textile hub in Tamil Nadu, is especially enthusiastic. Long celebrated for its robust ready-made garments and home textile industry, Karur is now eyeing a bigger slice of the UK market.
The local industry anticipates not just growth in volume, but a shift towards green garments and higher-value products, thanks to rising demand from environmentally conscious UK consumers. If projections hold true, the region’s textile exports—which currently stand at about $1.4 billion annually—could double within five to six years.
A growth this substantial will almost certainly bring fresh investments, more jobs, and the momentum needed for skills upgrades and technological innovation.
Homeline Textile’s Angelina Stephan Babu captured the spirit of local enterprises by underscoring the strategic value of the FTA. She sees it as more than just a trade agreement, but as the keystone for a broader economic partnership anchored in trust between India and the UK.
The gratitude expressed toward government leadership highlights just how significant the pact is considered within the sector.
A lifeline
Kanchipuram, another Tamil Nadu centre renowned for its heritage handloom sarees, has its own hopes pinned on the FTA. The town’s weaving community, consisting of thousands of artisans mainly located in areas like Pillayar Palayam and Ayyampettai, has faced tough times.
The growing prevalence of ‘power-loom sarees’ masquerading as traditional Kanchi silk, coupled with volatile gold and silver prices, has put genuine handloom weavers in a precarious position. Their call for government assistance to mitigate price hikes speaks to the ongoing struggles of sustaining traditional crafts.
However, the FTA has offered a glimmer of hope. Many local silk producers believe that expanded access to the UK market could act as a lifeline, spurring silk production and invigorating the cottage industry.
Mohan, a local saree maker, summed up the prevailing sentiment by welcoming the agreement as a timely intervention with the potential to revive traditional weaving and strengthen exports.
The jewellery sector, too, is set for a boost. Industry watchers expect the new framework to catalyse jewellery exports, reinforcing India’s stature as a global gems and jewellery hub.
