Supply chain disruptions due to emerging geopolitical shift
India’s textile and apparel export dynamics are entering a decisive transition as UK and European apparel brands accelerate sourcing discussions with Indian manufacturers, driven by impending Free Trade Agreements (FTAs) and supply-chain recalibration.
Reshape manufacturing footprints
Leading retailers such as Marks & Spencer, Primark, Next, C&A and others have intensified factory audits and technical evaluations in key hubs like Tiruppur, signalling intent to expand or initiate sourcing from India.
This momentum is shaped by a convergence of factors—uncertainty in Bangladesh, rising concentration risks, and expectations of tariff relief once the India–UK and India–EU FTAs are operational.
There is more to it: India is in sweet spot
Currently, Indian apparel exports face duties of around 12.5% in the UK and close to 10% in the EU, while Bangladesh has long benefited from duty-free access.
The proposed FTAs are expected to eliminate or significantly reduce these duties, placing India on a more competitive footing with regional peers.
Good news; The India–UK FTA alone is projected to remove tariffs on nearly 99% of Indian exports once ratified.
Dominating themes: Diversification...Derisk
More than what meets the eye: Exporters note that even brands with entrenched Bangladesh supply chains are reassessing sourcing strategies to diversify risk.
Inflection point_Several buyers are reportedly open to shifting part of their production base to India, especially in categories such as garments, bottoms and denim.
Consistence is the hallmark
Capacity is the holy grail; Industry leaders caution, however, that translating opportunity into sustained gains will require rapid capacity expansion, compliance readiness, and execution agility.
With the EU and UK together accounting for a substantial share of India’s $37 billion textile and apparel exports, the FTAs could mark a structural inflection point—reshaping India’s role in global apparel sourcing over the next decade.
Unfolding story: Cherry picking
Mood remains cautious.
The devil lies in details!
Credits: This article is automated generated text by the Internet including from ET edition dated 14-01-2026. The content has been edited and reviewed by us.
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