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

Vivek Daswani
May 7
3 min read

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?

📧 daswaniexports@gmail.com
🌐 www.daswaniexports.com

Daswani Exports