India-UK CETA to Boost Textiles, Leather & Footwear Exports, Jobs and MSMEs

The meeting brought together officials from various ministries, industry associations, export promotion councils, research institutions, and private sector representatives.

In a significant move to capitalize on the India–UK Comprehensive Economic and Trade Agreement (CETA), the Department of Commerce held a high-level industry interaction today with key stakeholders from the textiles, leather, and footwear sectors. The meeting, conducted in New Delhi, was aimed at discussing the roadmap to maximize the benefits of the landmark free trade agreement, which promises duty-free access to the UK market for Indian exporters.

The meeting brought together officials from various ministries, industry associations, export promotion councils, research institutions, and private sector representatives. In a message to the participants, Union Minister of Commerce and Industry Shri Piyush Goyal emphasized that CETA is a transformative milestone that opens a new era of trade opportunities for Indian MSMEs, artisans, and manufacturers.

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A Game-Changer for Textiles and Footwear Sectors

According to Shri Goyal, the agreement removes tariff barriers that have long placed Indian products at a disadvantage in comparison to exports from countries like Bangladesh, Vietnam, Cambodia, and Pakistan, which enjoyed preferential treatment in the UK market.

Indian textiles and apparel, which previously faced duties up to 12%, will now enter the UK market duty-free, creating a level playing field for exporters and potentially doubling India’s exports in the segment. Sectors such as ready-made garments, home textiles, carpets, and handicrafts are set to benefit immensely.

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Boost to Employment and Regional Manufacturing Hubs

Textile clusters like Tirupur, Surat, Ludhiana, Jaipur, Panipat, Moradabad, and Bhadohi are expected to see significant growth. The zero-duty access is likely to boost exports, increase production, and create thousands of new jobs in these labour-intensive hubs.

Similarly, the leather and footwear sectors—which faced tariffs of 2% to 11.9%—will now gain duty-free access. India’s exports in this space, valued at USD 494 million in 2024, are projected to double to USD 1 billion within three years.

This move is expected to particularly benefit MSMEs, youth entrepreneurs, women-led businesses, and traditional artisans engaged in the production of Kolhapuri footwear, Mojaris, and other GI-tagged products.

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Industry Preparedness and Sectoral Support

Secretary, Department of Commerce Shri Sunil Barthwal highlighted that empowering MSMEs and simplifying trade procedures are central to CETA’s framework. The agreement also aligns technical standards, simplifies customs procedures, and protects India’s Geographical Indications.

The discussion involved organizations like Council for Leather Exports (CLE), Confederation of Indian Industry (CII), Indian Footwear Components Manufacturers Association (IFCOMA), Textile Export Promotion Councils, Footwear Design and Development Institute (FDDI), and Central Leather Research Institute (CLRI), alongside senior officials from DGFT, BIS, DPIIT, and the Ministry of Textiles.

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Driving Sustainability and Digital Inclusion

CETA also encourages sustainable production and digital enablement of MSMEs. It promotes integration with global value chains, e-commerce expansion, and adoption of modern design and manufacturing technologies.

Complementing these efforts are major initiatives like the Indian Footwear and Leather Development Programme (IFLDP) with an allocation of INR 1,700 crore, which focuses on:

• Establishing mega clusters and design studios

• Capacity expansion and technology upgrades

• Promoting Indian brands globally

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Way Forward: Industry Outreach and Cluster Readiness

The Ministry of Commerce affirmed its commitment to sectoral workshops, state-level cluster engagement, and policy support to prepare industries for optimal utilization of the trade pact. During the interactions, stakeholders were urged to take proactive steps to streamline their operations, enhance compliance, and leverage duty-free access for expanding market share in the UK.

Representatives across industries expressed optimism and welcomed CETA, seeing it as a catalyst for transforming India’s trade position in high-growth markets like the UK. They emphasized the need for industry-specific capacity building, brand building, and market intelligence to fully capitalize on this historic opportunity.

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The India–UK CETA represents a watershed moment for India's trade diplomacy—not just eliminating duties, but redefining how Indian businesses engage with the world. As India sets its sights on becoming a global manufacturing hub, this agreement is expected to drive exports, generate jobs, and bolster economic resilience in the post-pandemic world.