India-UK trade deal to help India compete with Bangladesh, Vietnam; create jobs: Traders
Surat, July 15
The India-UK Free Trade Agreement is expected to provide a much-needed boost to India's textile and garment industry by improving export competitiveness, generating employment and helping Indian manufacturers compete more effectively with rivals such as Bangladesh and Vietnam, local industry representatives said.
Speaking with ANI, Rangnath Sharda, a textile businessman and producer, said India will likely overtake Bangladesh and Vietnam following the India-UK FTA.
"Our domestic business will accelerate. People will get employment and workers who were sitting at home will return to work," he said.
Calling Surat the largest man-made fibre textile hub in Asia, Sharda said the industry had been facing a prolonged slowdown and had struggled to compete with Bangladesh and Vietnam in global markets.
"For a long time, we were going through a bad phase, and with this free trade agreement, we will get the benefit that for a long time, we were not able to compete Vietnam and Bangladesh," he said.
Garment manufacturer Takhat Mal Jain said the agreement would significantly increase direct exports from Surat, particularly of garments and traditional apparel such as chaniya cholis.
Jain added that exports to the UK had remained limited because of import duties, but the removal of tariffs under the FTA would substantially increase shipments. He said the agreement would also support the growth of Surat's emerging garment manufacturing sector.
Textile businessman Lalit Sharma said the reduction in duties would make Indian garments much more affordable in the UK market, boosting demand.
"Approximately 35% of the duty was being done in the UK. If 35% of the cost is cut, India's clothes will become cheap bringing more demand," Sharma said, underlining strong demand as there are many Indians living in the UK.
"When India's clothes will become 35% cheaper," he said, "people from Asian countries will prefer India's clothes...we will be able to export directly."
— ANI
Reader Comments
This sounds promising, but I hope the benefits reach the actual workers and not just big manufacturers. Our textile workers in Surat and other hubs have faced so much hardship with the slowdown. Let's see how much employment actually generates.
Finally! We have a huge Indian diaspora in the UK who love traditional wear like chaniya cholis and sarees. This FTA will make it easier for them to get authentic Indian clothes without paying heavy import duties. Win-win for both countries! 👌
I'm cautiously optimistic. Bangladesh and Vietnam have been giving us tough competition because of their lower labor costs and better infrastructure. We need to invest in modernization too, not just rely on tariff removal. Otherwise, this advantage won't last long.
As someone from a textile family in Surat, I can tell you this is a big deal. We've been losing orders to Bangladesh for years because of duty differences. With this FTA, our synthetic fabrics and traditional wear will finally have a level playing field. Let the good times roll! 🎉
Good initiative, but we need to see the full picture. What does UK get in return? Are we compromising on other sectors like agriculture or pharmaceuticals? Trade deals should be balanced. Our negotiators need to be careful not to give away too much for textile benefits.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.