Union Commerce and Industry Minister Piyush Goyal has described the India-UK Comprehensive Economic and Trade Agreement (CETA) as a transformative milestone for India’s textile, leather, and footwear industries. In a message to stakeholders at a meeting held by the Department of Commerce in New Delhi on Monday, Minister said the historic agreement offers unprecedented opportunities and is poised to significantly boost India’s export potential, especially in textiles.
India–UK CETA agreement removes key trade barriers by providing Indian products with duty-free access to the UK market. Previously, Indian exporters faced tariff disadvantages of up to 12% compared to competitors such as Bangladesh, Cambodia, and Pakistan.
The zero-duty access will benefit a wide range of Indian products including ready-made garments, home textiles, carpets, handicrafts, and leather goods. Specifically, the leather sector will see the removal of tariffs ranging from 2% to 8% on goods, 4.5% on leather footwear, and 11.9% on non-leather footwear. This is expected to nearly double India’s leather and footwear exports to the UK, from USD 494 million in 2024 to USD 1 billion within the next three years.
Major manufacturing hubs such as Tirupur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi, and Moradabad are poised to benefit significantly. The projected surge in demand is expected to generate thousands of new jobs, particularly among MSMEs, artisans, women entrepreneurs, and youth-led businesses.
Commerce Secretary Sunil Barthwal highlighted that the elimination of tariffs and support for MSMEs would drive inclusive growth, job creation, and global recognition of Indian craftsmanship.
The agreement also simplifies customs procedures, aligns technical standards, and provides legal protection for Indian Geographical Indications (GIs) like Kolhapuri footwear and Mojari, strengthening India’s brand presence in the UK’s USD 8.7 billion leather and footwear market.
Beyond easing trade, CETA encourages sustainable manufacturing and supports MSMEs in adopting digital tools, integrating with global value chains, and expanding their e-commerce footprint. This transformation is further backed by government initiatives such as the Indian Footwear and Leather Development Programme (IFLDP), with an outlay of INR 1,700 crore, and the proposed Focus Product Scheme aimed at technology upgrades, cluster development, and international branding.
Industry associations and export promotion councils have welcomed the agreement, emphasizing that duty-free access will enhance the global competitiveness of Indian products. Stakeholders also discussed the need for timely follow-up measures and industry readiness to fully leverage the benefits of the trade deal.
Ministry plans to hold additional consultations and workshops in the coming days to ensure manufacturers and exporters across the country are well-prepared to capitalize on the opportunities offered by this landmark agreement.
Stakeholder interaction brought together representatives from leading industry associations, export promotion councils, and key government departments to deliberate on sectoral preparedness and the wide-ranging benefits arising from the agreement.
