Gokaldas Exports expects a 12% [1] tariff advantage over China in the United Kingdom market following a new free trade agreement.
This shift allows Indian textile manufacturers to undercut major competitors on price, potentially shifting the flow of apparel imports into the UK. The agreement removes a significant cost barrier that previously hindered Indian exports.
Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports, said the deal opens approximately $1 billion [1] of additional export opportunity to the UK. He said that this reduction in the tariff burden is expected to improve the company's profit margins in FY27 [1].
The broader UK-India free trade agreement is valued at approximately $6.45 billion [2]. The deal was signed on July 24 [2] and is scheduled to operate starting July 15 [3].
Industry leaders indicate that the removal of a 10% to 12% [4] tariff on Indian apparel will make the sector more competitive. Pallab Banerjee, Managing Director of Pearl Global, said the elimination of these duties will increase the appeal of Indian apparel in the British market [4].
Beyond textiles, the agreement includes protections for other industrial sectors. Specifically, 85% [3] of Indian steel exports are shielded from British curbs under the terms of the deal.
Ganapathi said the FTA gives India a 12% [1] tariff advantage over China in the UK market.
“FTA gives India a 12% tariff advantage over China in the UK market.”
The agreement signals a strategic pivot for Indian textile exporters to capture market share from China by leveraging lower entry costs. By eliminating duties that ranged from 10% to 12%, India is positioning its apparel sector as a high-volume, low-cost alternative for UK retailers, which may lead to a long-term diversification of the UK's clothing supply chain.
