The Southern India Mills’ Association (SIMA) has hailed the recently finalized Free Trade Agreement (FTA) between India and the United Kingdom as a major breakthrough for the Indian textile and apparel industry.
SIMA Chairman Dr. S.K. Sundararaman praised the efforts of Prime Minister Narendra Modi and Ministers Piyush Goyal and Giriraj Singh for successfully concluding this landmark deal. He emphasized that this FTA will significantly enhance India’s textile exports by eliminating the 10–12% tariffs currently levied on garments and 4–8% on yarns and fabrics entering the UK.
The Indian textile industry, which employs over 110 million people—particularly in rural areas and among women—has long faced tariff barriers compared to competitors like Bangladesh and Vietnam. The FTA now gives Indian manufacturers a fairer chance in one of the world’s largest markets for ready-made garments.
With UK being India’s second-largest garment export destination, this agreement is expected to drive major investments and job creation across the sector. It will also enable the textile industry to utilize surplus production capacity, energize export hubs like Karur, and strengthen key government initiatives including PM MITRA Parks, the PLI Scheme, and the National Technical Textiles Mission (NTTM).
This milestone comes at a critical time when Indian textile exports to the US have slowed due to tariff uncertainties, offering a much-needed boost to industry growth and stability.