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šŸŒ 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.


šŸ“ˆ Key Highlights of the UK-India FTA


āœ… 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 jewelryĀ (Source: Economic Times)

šŸ’² 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 tariffsĀ will drop from 150% to 75% immediately, and gradually to 40% over 10 years (Source: BBC News)

  • Car dutiesĀ 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 Ā£25.5 billion annually by 2040Ā (Source: UK Department for Business and Trade).

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

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


šŸ­ Why This Matters for the Home Textiles Sector


šŸ‡®šŸ‡³ 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 dutyĀ on most textile items gives India a cost advantageĀ over competing countries like Bangladesh, Pakistan, and China.

  • Enables aggressive pricingĀ without compromising quality.

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

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


šŸ‡¬šŸ‡§ Advantages for UK Importers

  • Retailers, wholesalers, bulk distributors, and hospitality chainsĀ can now cut costsĀ on imports.

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

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

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


šŸ“Œ 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

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

šŸš€ 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:

  • šŸ‘‰ Offering 100% cotton, OEKO-TEXĀ® certified bed and bath linens.

  • šŸ‘‰ Providing custom designs, sizes, GSMs, and brandingĀ for private-label clients.

  • šŸ‘‰ Fulfilling bulk orders for retailers, hotel chains, hospitality importers, and B2B distributors.

  • šŸ‘‰ Ensuring fast, tariff-free delivery with full traceability.


āœ‰ļø 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

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

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