The 2025 India UK Free Trade Agreement is a major step in boosting trade between the two nations. For clothing manufacturers in India, this deal opens exciting new opportunities, especially in the fashion and textile sectors.
If you’re wondering, “Does the UK have a free trade agreement with India?”—yes, and this new agreement comes with big benefits for Indian exporters.
Let’s explore the top 5 India UK free trade agreement benefits, especially for t-shirt manufacturers and hoodie manufacturers across India.
1. Reduced Import Tariffs on Indian Garments
One of the biggest wins of this trade agreement is the reduction or complete removal of import tariffs. Earlier, Indian garment exports faced taxes of up to 12% in the UK. Now, many of those tariffs are gone.
As a result, Indian products are cheaper for UK buyers. This gives Indian exporters a clear advantage over countries that don’t have a similar deal.
T-shirt manufacturers and hoodie manufacturers in India can now offer better prices in the UK market—without cutting into profits.
2. Easier Access to UK Retailers and Fashion Markets
The deal also simplifies trade rules. This makes it easier for Indian companies to enter the UK market.
For Indian clothing manufacturers, this means faster shipments, less paperwork, and smoother supply chains.
With the UK’s fashion industry worth over £60 billion, Indian businesses now have a better chance to reach big retailers and popular online platforms.
T-shirt and hoodie exporters can now supply products that match the fast-changing demands of UK consumers.
3. More Investment and Technology Support
Thanks to this deal, more UK companies are likely to invest in India’s textile industry.
This could mean new technology, better equipment, and advanced design tools. These upgrades will help Indian clothing manufacturers improve quality and stay globally competitive.
It also opens the door for partnerships. UK brands may now work directly with Indian hoodie manufacturers or t-shirt factories for long-term deals and private label projects.
4. Stronger Global Image for Indian Apparel
The free trade agreement boosts India’s image as a trusted source of high-quality clothing.
As barriers fall, Indian products will become more visible across the UK and Europe. This global exposure helps Indian companies build stronger brands.
For cities like Tirupur, Ludhiana, and Surat—known for apparel—this is a major opportunity. Many t-shirt manufacturers in these regions can now market themselves to UK buyers with more confidence.
5. More Jobs and Growth for Small Manufacturers
With exports rising, Indian factories will need to increase production. This means more jobs—especially in Tier 2 and Tier 3 cities.
MSMEs (small and medium businesses) will see more orders, new clients, and higher profits. This is especially helpful for newer businesses focused on t-shirts or hoodies for export.
Local economies will benefit as well. The deal is expected to boost income, skills, and job opportunities across India’s textile hubs.
A Game-Changer for Indian Apparel Exports
So, does the UK have a free trade agreement with India? Yes—and it brings big gains for Indian exporters.
The India UK Free Trade Agreement of 2025 makes Indian clothing more competitive in a major fashion market. For t-shirt manufacturers, hoodie manufacturers, and the wider apparel industry, this is a golden opportunity to grow.
If you’re in the clothing business, now is the time to prepare your exports and make the most of this powerful new trade relationship.
