Mumbai, May 8 (IANS). After the free trade agreement, India is expected to increase its market share from 6 percent to 12 percent in UK readymade apparel imports, which will provide an annual export opportunities of $ 1.1–1.2 billion in the near medium period. This information was given in the report released on Thursday by Carey Ratings.
The UK is one of the top five readymade apparel (RMG) markets, where an import of about $ 20 billion was recorded in 2024.
Currently, India has 6 percent market share in UK RMG imports, while Bangladesh, Turkey, Cambodia, Vietnam and Italy have a duty-free access, which gives them 12 percent tariffs from India.
However, the report states that the Indo-UK FTA is a major change for India’s RMG region, providing equal opportunities with major competitive countries to reach the UK’s RMG market of about $ 20 billion.
Despite 12 percent of tariffs, India has gradually gained a gradual share in the UK market in the last four years, while some stake in China has decreased during the same period.
With the signing of the FTA with the UK, India now has a 12 percent fee profit from China, which is the largest RMG exporter of the UK with an export of $ 5 billion in 2024.
The report said that China has lost its market share over the years. In addition, rising labor costs and its declining competitiveness supported by the rising labor costs and its declining competitiveness supported by the ‘China Plus One’ sourcing strategy adopted by the global costumes and retailers is expected to decrease further.
Carey Ratings Director Krunal Modi said, “With a clear 12 percent duty profit on China and the current socio-political uncertainties in Bangladesh, which are responsible for the market share of about 45 percent of the UK RMG imports, India is expected to double its share in 2024 in 2024 in this market.”
The Indo-UK FTA has the important ability to promote investment in the textile price chain, generate employment, especially in labor-intensive RMG sector and increase foreign exchange income for women. “
The RMG industry took a significant share of about $ 525 billion in overall global textile and RMG trade, which was around $ 900 billion in 2024.
-IANS
SKT/ABM
