The India–UK Free Trade Agreement, signed in May 2025, has shaken up the fashion industry on both sides—duty-free access now spans 99% of Indian exports and 90% of UK goods.
For fashion, the implications are electrifying. Indian design houses—from Sabyasachi to Kartik Research—now gain seamless access to UK markets without hefty tariffs. HM-supported projections show India’s luxury and apparel exports could double by 2027. Traditional crafts—Banarasi silks, Kutch embroidery, Madhubani prints—are no longer niche curiosities; they’re poised to become mainstream UK collections.
Exporters from Tiruppur and Surat (textiles), Jaipur (handicrafts), and Moradabad (brassware) are already prepping for order surges—apparel volumes like shirts, trousers, and knitwear are expected to surge. British buyers, diversifying beyond China/Bangladesh thanks to “China‑plus‑one” strategies, are keen on India’s scale and quality.
Beyond tariffs, the agreement signals deeper change. Regulatory obstacles are being eased. More visas are available for Indian professionals, enabling fashion talent exchange . And digitally-savvy MSMEs are benefiting from supply chain clarity and improved infrastructure.
Yet challenges remain: fragmented value chains, MMF taxation issues, and logistical inefficiencies could hold growth back. Fixes are needed—like GST reform and export-oriented textile parks under PM MITRA.
Final Take: The India‑UK FTA isn’t just economic—it’s cultural. It’s a formal bridge elevating Indian heritage craft and ready-to-wear to global wardrobes. But success depends on India harnessing export readiness, policy clarity, and design innovation. London boutiques may soon be lined with South Asian stories.
