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🌍 New UK-India Free Trade Agreement: A Game-Changer for Home Textile Exports

On May 6, 2025, the United Kingdom and India finalized a historic Free Trade Agreement (FTA), marking a significant step in strengthening bilateral trade ties post-Brexit. For the home textiles sector, this landmark deal offers unprecedented opportunities for Indian exporters and UK importers alike.


📈 Key Highlights of the UK-India FTA


✅ Duty-Free Access for 99% of Indian Exports

Under the new agreement:


  • 99% of Indian goods exported to the UK will now enter duty-free.

  • Major product categories covered include textiles, apparel, leather, footwear, marine products, and jewelry (Source: Economic Times)

💲 Reduced Tariffs for UK Exports to India


India has agreed to:

  • Reduce tariffs on 90% of British exports, including alcohol, automobiles, medical devices, and cosmetics.

  • Notably, whisky tariffs will drop from 150% to 75% immediately, and gradually to 40% over 10 years (Source: BBC News)

  • Car duties will fall from over 100% to 10% under a quota system for luxury vehicles (Source: Financial Times)


🌐 Economic Impact

  • Projected to boost bilateral trade by £25.5 billion annually by 2040 (Source: UK Department for Business and Trade).

  • Expected to create over 1 million jobs in both countries.

  • Establishes stronger supply chains in sectors such as renewables, manufacturing, and textiles.


🏭 Why This Matters for the Home Textiles Sector


🇮🇳 Opportunities for Indian Exporters

Indian home textile manufacturers and exporters, especially in categories like bed linens, bath towels, duvet covers, and curtains, will benefit immensely:

  • Zero import duty on most textile items gives India a cost advantage over competing countries like Bangladesh, Pakistan, and China.

  • Enables aggressive pricing without compromising quality.

  • Encourages more UK bulk importers, hospitality sourcing agents, retailers, and distributors to source directly from Indian mills.

  • Strengthens India’s global position in organic and OEKO-TEX® certified cotton products (Source: Textile Value Chain).


🇬🇧 Advantages for UK Importers

  • Retailers, wholesalers, bulk distributors, and hospitality chains can now cut costs on imports.

  • No-duty access enables higher margins or better pricing for end customers.

  • Easier to explore private-label partnerships with Indian manufacturers.

  • Supports UK firms seeking sustainable and ethical sourcing from traceable supply chains.


📌 Key Product Categories Likely to Surge

Product Category

Tariff Before FTA

Tariff After FTA

Market Use Case

Bed Sheets

8-12%

0%

Hotels, Retail, B2B e-commerce

Towels

10%

0%

Gyms, Resorts, Hospitality Chains

Curtains

12%

0%

Interior Design, Housing Projects

Pillow Covers

8-10%

0%

Bedding Retailers, Gift Packs

📄 According to the UK Department for Business and Trade, the textile sector alone could see an export increase of 35% YoY from India by 2027 due to these tariff eliminations (Source).

🚀 How Daswani Exports is Leveraging This Opportunity

At Daswani Exports, we see the UK-India FTA as a springboard to grow our textile footprint in the UK market. Here's how we're ready:

  • 👉 Offering 100% cotton, OEKO-TEX® certified bed and bath linens.

  • 👉 Providing custom designs, sizes, GSMs, and branding for private-label clients.

  • 👉 Fulfilling bulk orders for retailers, hotel chains, hospitality importers, and B2B distributors.

  • 👉 Ensuring fast, tariff-free delivery with full traceability.


✉️ Reach Out to Start Your Sourcing Journey

Looking to import premium home textiles into the UK with zero duty?

Contact us today for a quote or custom sample:


 
 
 

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Daswani Exports is a leading Indian export house, delivering textile solutions to global markets.

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