US-China tariff cuts may hit Indian export edge, say exporters

The removal of import duties on a range of Indian goods in labour-intensive sectors such as apparel, clothing, and leather under the free trade agreement with the UK will boost the competitiveness of domestic players in the British market against countries like Bangladesh and Vietnam, exporters say. They also said that the Free Trade Agreement (FTA) has eliminated or significantly reduced tariffs on a wide range of Indian goods, which would give domestic exporters’ preferential access to one of the world's most affluent and consumption-driven markets. "Removal of tariffs will enhance India's competitiveness against countries like Bangladesh and Vietnam," Federation of Indian Export Organisations (FIEO) President SC Ralhan said. He added that streamlined regulatory processes will accelerate generic drug approvals in the UK.
Sharing similar views, A Sakthivel, Vice Chairman of the Apparel Export Promotion Council (AEPC) said that by unlocking new export opportunities, reducing trade barriers, and enabling greater access to the premium UK market, this agreement promises to empower Indian weavers, manufacturers, and exporters across the value chain. "The India-UK FTA is expected to pave the way for long-term growth, attract investment, and create a more favourable business environment for textile stakeholders in both countries," Sakthivel said. Sectors such as woven and knitted apparel, made-ups, footwear, carpets, and marine products will become more competitive in the UK market.
Products, like woven and knitted apparel, made-ups, footwear, carpets, and marine goods, will now enter the UK market with tariff advantages ranging from 5-9 per cent. For instance, woven apparel, which currently sees exports of USD 753 million from India to the UK, is projected to grow to USD 1.6 billion by2027.