According to CareEdge Ratings, India is expected to double its market share from 6% in CY24 to 12% in the UK’s RMG imports, translating into an incremental annual export opportunity of around US$1.1-1.2 billion in the near to medium term.
The UK is among the top five RMG markets, with imports of around US$20 billion in CY24 (compared to US$24 billion in CY22). Currently, India holds a 6% market share in the UK's RMG imports, while Bangladesh, Turkey, Cambodia, Vietnam, and Italy enjoy duty-free access, giving them a 12% tariff advantage over India.
The India-UK FTA is a game changer for India’s RMG sector, creating a level playing field vis-à-vis key competing nations for accessing the nearly US$20 billion RMG market of the UK.