The Indian government has announced a significant boost to its leather and footwear exports to the UK, with exports expected to nearly double from USD 494 million in 2024 to USD 1 billion within three years following the signing of the bilateral free trade agreement.
Key Highlights of the India-UK Comprehensive Economic and Trade Agreement
* Elimination of import duties: The India-UK CETA eliminates the UK’s import duties for Indian products, providing a level playing field for Indian exporters against competitors. * Regulatory ease: The agreement simplifies customs procedures, aligns technical standards, and ensures protection of Indian Geographical Indications (GI). * Enhanced visibility: The agreement allows Indian products to gain enhanced visibility in the UK’s USD 8.7 billion leather and footwear market. * Increased demand: Key manufacturing hubs across the country are set to benefit significantly, with a projected surge in demand expected to generate thousands of new jobs.
- MSMEs, artisans, women entrepreneurs, and youth-led enterprises
- Thousands of new jobs created
- Capacity expansion, technology upgrades, creation of mega clusters and design studios
Impact on the Textile Sector
The CETA has positioned India’s textile sector for a significant surge in exports, with duty-free access to the UK market and the elimination of duty disadvantages. This will benefit segments such as ready-made garments, home textiles, carpets, and handicrafts.
| Segment | Duty-Free Access | Benefits |
|---|---|---|
| Ready-made garments | Duty-free access to the UK market | Sharp surge in exports |
| Home textiles | Duty-free access to the UK market | Increased demand |
| Carpets | Duty-free access to the UK market | Boost in exports |
| Handicrafts | Duty-free access to the UK market | Enhanced visibility |
The representatives of various Export Promotion Councils and Industry associations welcomed the India-UK CETA and mentioned that the duty-free access will make Indian products more competitive and provide a level playing field to Indian textile exporters.
Government Initiatives
The Indian government has launched several initiatives to support the growth of the leather and footwear sector, including:
* The Indian Footwear and Leather Development Programme (IFLDP), with an outlay of Rs 1,700 crore. * The proposed Focus Product Scheme for the footwear and leather sector, which supports capacity expansion, technology upgrades, creation of mega clusters and design studios, and international brand promotion. The Department of Commerce held an industry interaction with stakeholders from the textiles, leather and footwear sector to discuss the opportunities created by the India-UK Comprehensive Economic and Trade Agreement (CETA).
Conclusion
The India-UK CETA presents a transformative opportunity for India’s leather and footwear industries, with a projected surge in demand expected to generate thousands of new jobs. The agreement provides Indian textile & clothing products with duty-free access to the UK market and addresses the duty disadvantages faced by the Indian textiles sector. With government initiatives to support capacity expansion, technology upgrades, and international brand promotion, the outlook for India’s leather and footwear industries is positive.
