Textile and apparel exports to the UK and European markets in India are expected to see a major surge in the coming 15 months, with recently signed FTAs making Indian manufacturers more competitive. According to Sharad Jaipuria, Chairman, Denim Manufacturers Association (DMA), textile exports to UK and European Union countries are expected to increase by around 30-40%.
Addressing the media on the fringes of Gartex Texprocess India, Jaipuria claimed trade pacts could help Indian textile players overcome a historic handicap in European markets. India for long has paid more import duties than its textile-exporting competitors – Bangladesh and Pakistan, for example. Wiping off the extra duties could result in Indian players finding it easier to reach global customers.
Changes in FTAs might alter India's competitive edge
India holds just 3% of the European textile market at present, according to Jaipuria. He added that even now, countries like Bangladesh, Pakistan and Turkey have historically had an advantage over India in the region, as their products used to attract lower duties.
The new trade pact could have a positive impact on this competitive gap. Jamnagaon assumes that the first visible effect of these pacts will be felt within the next few months, with intense growth following as traders and consumers adapt their sources of supply.
Furthermore, he has forecasted an extra annual export growth of 10-15% after the initial expansion, indicating the potential of the FTAs for the long run in increasing India’s textile and garment exports rather than a short-term impact.
The wider textile industry in the country is already beginning to perform. The Government of India has reported that exports of major textile products in the country stood at US$ 3.10 billion in July 2025, a growth of 5.37percent over July 2025. Cumulative exports of the April-July 2025 period were US$ 12.18 billion, a growth of 3.87percent over the same period last year.
Exports of readymade garments during the same period have grown 7.87percent.
Metal packaging industry is bullish on value addition in denim sector
The denim sector could potentially be one of the key beneficiaries of better market access. India has the second largest denim manufacturing capacity globally after China and produces around 1.6 billion metres of denim every year, Jaipuria said.
What India has going for it is the fact that most of the Indian textile mills have vertical integration when it comes to the production of its wool, with spinning, weaving and denim manufacturing all being carried out at production facilities that are often linked in the same compounds. Unfortunately, garment manufacture is a step missing for many companies.
The rising trend among international buyers is to get end product value added rather than fabrics alone. Tariff competitiveness has improved and might provide additional motivation for Indian mills to invest in garmenting infrastructure and diversify into higher value segments.
Jaipuria mentioned that the industry should prepare in advance for the expected rise in demand. Manufacturers should keep in constant touch with overseas customers, carry out sampling and build up capacity in advance of large-volume orders. It would be critical as new capacity creation and supplier qualification would take time.
Sustainability becoming increasingly important
In addition to trade policy, sustainability is becoming another key driver of the future of India's textile industry.
The buyers of the global textile and apparel industry are seeking products and processes that cause less damage to the environment. Denims are known to cause more damage in terms of usage of water and chemical.
Indian textile producers are tackling the rising costs by adopting use of recycled cotton, application of pesticide-free cotton and employing water-conservative technologies. Jaipuria also explained the increased dependence on water recycling in textile manufacturing.
In case of Indian exporters, adhering to environmental and sustainability standards could be equally important as cost competitiveness. Purchasing decisions of clients in developed markets are driven increasingly by factors other than price, and environmental compliance as well as responsible production are fast emerging as critical factors for future exports.
Manufacturing capacity, MMF remain key challenges
Although FTA has created new opportunities for industry, faced with the new environment, the industry would have to overcome some structural problems to fully realize the benefit of market access.
Countries worldwide are experiencing a trend towards increased diversification of demand in textiles, moving away from over-reliance on specific fibres, in particular cotton, to a focus on MMF products. India has been traditionally strong in cotton textiles; however, as Jeipuria pointed out India was moving toward MMF more and government support measures for garment making are growing.
The increase in garmenting capacity may be especially significant. The higher duties had earlier posed a significant barrier to the ability of certain Indian manufacturers to compete on a level playing field with exporters from countries such as Bangladesh and Vietnam. If the tariff disadvantage is removed, investment in garment factories may appear more commercially viable.
Government incentives at state as well as central levels are also likely to boost the garment manufacturing industry. According to Jaipurias, India can see substantial additional garmenting capacity coming up within the next 2-3 years.
Exports depend on a well-trained workforce
Of course, the level of industry competitiveness will be determined by more than tariffs and production capacity. Jaipuria, for example, perceived worker skilling as an important area for India.
He claimed that the skill levels of workers in India 'continue to lag' those in some competing countries such as Bangladesh and Pakistan. 'As larger garment manufacturing plants are established, companies will have to make significant investments in training and productivity enhancement of their workers.'.
The experience of India's electronics manufacturing sector shows how large-scale training can enable new industries to grow quickly. A comparable program may be necessary in textiles if India is to benefit from expanded market access.
An enormous opportunity for Indian textiles
This anticipated boost of 30-40% in textiles exports to the UK/EU is an enormous opportunity for Indian manufacturers at a time when the reorganization of global supply chains is underway.
But the advantages of FTAs will not necessarily result in increased exports. Indian firms will have to develop garmenting capacity, penetrate into MMF products, upgrade worker skill, comply with sustainability requirements and establish close links with foreign clients.
According to Jaipuria, the 15 months ahead may be a critical inflection point for India's textiles industry. If producers are able to step up capacity and competitiveness even as new trade deals bring tariff reductions, India may be able to not only bolster its share in the European/UK market, but also sustain exports for much longer than the FTA-induced burst.
