India-UK trade pact to revitalize textile exports

The Indian textile industry is ready for a transformation as the India-UK Comprehensive Economic and Trade Agreement (CETA) takes effect.  By securing zero-duty access for nearly 99 per cent of Indian goods, the pact eliminates long-standing tariff disadvantages, allowing Indian manufacturers to compete more aggressively against established export hubs like Bangladesh and Vietnam. The recent notification of the Customs Tariff (Determination of Origin of Goods) Rules, 2026, gives the essential legal scaffolding for this transition, ensuring that exporters can accurately navigate and claim preferential benefits.

Kumar Duraiswamy, Joint Secretary, Tiruppur Exporters' Association opines, the agreement has substantially increased sentiment across major textile clusters, the industry is moving toward a level playing field where their quality and reliability will finally be matched by price parity, allowing them to scale their turnover significantly. Industry leaders anticipate, a rise in demand across the value chain, ranging from man-made fiber products to premium home textiles. By shifting focus toward high-value, differentiated offerings rather than low-cost volume, Indian companies are positioning themselves as strategic partners within global retail ecosystems, aiming to accelerate the nation’s progress toward a $100 billion annual export target by 2030.