India could double market share of UK’s RMG imports following FTA: CareEdge Ratings

May 09, 2025

Category: GARMENTS

Country: India

Region: Asia

India is poised to double its share of the UK’s ready-made garments imports from 6% in the 2024 calendar year to 12% in the near to medium term, according to CareEdge Ratings. The development could generate an incremental annual export opportunity of around $1.1 billion to $1.2 billion for Indian exporters.

By Isabelle Crossley
8th May, 2025.
Reading time: 2 minutes

The UK is among the top five global RMG importers, with projected imports of approximately $20 billion in 2024, CareEdge Ratings announced in a press release. While countries such as Bangladesh, Turkey, Cambodia, Vietnam, and Italy already enjoy duty-free access to the UK, India has been operating under a 12% tariff disadvantage. The recently signed India-UK free trade agreement is expected to eliminate this gap and enhance India’s competitiveness.

“With a clear 12% duty advantage over China and prevailing socio-political uncertainties in Bangladesh, which together account for nearly 45% of market share in UK’s RMG imports, India is expected to double its share,” said CareEdge Ratings' director Krunal Modi in a press release.

Despite the previous tariffs, India has gradually gained ground in the UK market over the past four years, while China’s share has declined due to rising labour costs and the ‘China Plus One’ strategy adopted by many global brands.

India’s RMG exports rose by 10% to $16 billion in the 2025 financial year and CareEdge estimates further growth potential of 10% to 15%, driven by enhanced market access and available capacity. “India’s major dependency on cotton-based textiles… may restrict the overall opportunities from the India-UK FTA to an extent,” said CareEdge Ratings' assistant director Akshay Morbiya.