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Informist, Monday, Jul. 28, 2025

NEW DELHI – India is likely to double its leather and footwear exports to the UK to $1 billion within three years, thanks to the elimination of tariffs under the Comprehensive Economic and Trade Agreement signed between the two countries last week, the commerce ministry said Monday. India had exported leather and footwear worth $494 million to the UK in 2024.

"Key manufacturing hubs across the country are set to benefit significantly, with a projected surge in demand expected to generate thousands of new jobs, particularly among MSMEs (micro, small and medium enterprises), artisans, women entrepreneurs, and youth-led enterprises," the ministry said in a release after a meeting with stakeholders of textiles, leather, and footwear industry on Monday. 

Commerce and Industry Minister Piyush Goyal told the stakeholders that the trade agreement with the UK opens opportunities for these sectors. Goyal said the trade pact has positioned India's textile sector for a significant surge in exports.

India and the UK Thursday signed the Comprehensive Economic and Trade Agreement after nearly three years of negotiations. Under the pact, nearly 100% of India's exports to the UK will get duty-free market access. India has committed to cut duty on 90% tariff lines while the UK would slash duty on 99% tariff lines.

The agreement provides Indian textile and clothing products duty-free access to the UK markets, the ministry said. The trade pact eliminates the UK's import duties on Indian products, which ranged from 2-8% for leather goods, 4.5% for leather footwear, and 11.9% for non-leather footwear. "This levels the playing field for Indian exporters against competitors such as Bangladesh, Cambodia, and Vietnam, who have enjoyed preferential access to the UK market," the ministry said. 

The zero-duty market access will benefit segments such as ready-made garments, home textiles, carpets, and handicrafts. The trade agreement will help increase demand for Indian textiles and benefit major textile clusters such as Tirupur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi, and Moradabad, the release said. 

The agreement also simplifies customs procedures, aligns technical standards, and ensures the protection of Indian geographical indications such as Kolhapuri footwear and Mojari, allowing Indian products to gain enhanced visibility in the UK's $8.7 billion leather and footwear market, the release said.  End

US$1 = INR 86.67

Reported by Shubham Rana

Edited by Tanima Banerjee

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