Expected India-UK FreeTrade Agreement : A Potential Boon to Indian Fashion Industryfashioncareers
Amid the excitement associated with Rishi Sunak’s name doing the rounds as potential Candidate for PM’s post in England, the ongoing talks between the British and Indian delegates on signing Free Trade Agreement has been relegated to background.
The deal is expected to be finalized by October this year. The Bilateral FTA may prove to be a boon for the Indian exporters especially the exporters dealing in textiles and lifestyle products.
They will recieve relaxed duty structure as compared to its competitors such as Sri Lanka, Bangladesh and Pakistan , which used to enjoy preferential access to the market under GPS scheme.
This used to affect Indian Textile’s exports to the UK since India couldn’t enjoy the benefits under GPS scheme. However, once the Bilateral FTA materialises , India may see a boost in the exports of Apparels, Jewellery , Leather Products etc as India will get a competitive edge over its competitors and become one of the most preferred sourcing destinations for these items.
The boost in the exports of textiles and other lifestyle products may lead to a large scale job creation in the fashion industry as textile, apparel and lifestyle industries are highly labour intensive. The increased exports would also boost the foreign exchange reserves of the country.
The India-UK FTA along with several initiatives and projects such as 7 Mega textile Parks, PLI scheme, India- UAE FTA etc will also play an integral role in helping India textile exports reach the target of $100 Billion.