Commerce min asks leather, textiles exporters to boost output, tap gains of UK trade pact

New Delhi, Jul 28 (PTI) The commerce ministry on Monday asked leather and textiles exporters to ramp up production and strengthen their supply chains to fully capitalise on the market access benefits offered under the India-UK free trade agreement (FTA), which eliminates duties on these labour-intensive segments, an industry official said.

They said the ministry also suggested joining hands with the Indian Mission in London, buyers and retailers in Britain to increase exports.

These issues were discussed during an industry interaction called by the ministry with stakeholders from the textiles, leather, and footwear sector here to discuss the opportunities created by India-UK Comprehensive Economic and Trade Agreement (CETA).

Addressing the stakeholders, Commerce Secretary Sunil Barthwal emphasised that eliminating tariffs would promote shipments.

The agreement provides Indian textile and clothing products with duty-free access to the UK market and addresses the duty disadvantages (of up to 12 per cent) that these sectors faced in the UK vis-a-vis some key competing countries like Bangladesh, Cambodia, and Pakistan.

The zero-duty market access will benefit segments such as ready-made garments, home textiles, carpets and handicrafts and set the tone for a sharp surge in exports.

"The agreement will help in increasing demand of Indian textiles and benefit all major textile clusters such as Tiruppur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi, Moradabad," the commerce ministry said in a statement.

CETA eliminates the UK's import duties for Indian products, which till now are ranging from 2-8 per cent for leather goods, 4.5 per cent for leather footwear, and 11.9 per cent for non-leather footwear.

"This levels the playing field for Indian exporters against competitors such as Bangladesh, Cambodia, and Vietnam, who have enjoyed preferential access to the UK market," it said, adding that the tariff elimination is expected to nearly double India's leather and footwear exports to the UK -- from USD 494 million in 2024 to USD 1 billion within three years.

The agreement also simplifies customs procedures, aligns technical standards, and ensures protection of Indian Geographical Indications (GI) such as Kolhapuri footwear and Mojari, allowing Indian products to gain enhanced visibility in the UK's USD 8.7-billion leather and footwear market.

As part of the stakeholder engagement, industry and institutional invitees to the meeting included the Council for Leather Exports (CLE), Confederation of Indian Footwear Industry (CIFI), Indian Footwear Components Manufacturers' Association (IFCOMA), the Footwear Design and Development Institute (FDDI), Central Leather Research Institute (CLRI), Leather Sector Skill Council (LSSC), and various textile export promotion councils. PTI RR TRB