City exporters from the textile and woolen sectors are excited about the recent signing of the India-UK Free Trade Agreement (FTA). They believe this agreement will significantly boost exports of quality shawls, tweeds, blazers, and blankets.
The Indian Union Cabinet has already approved the agreement, which is expected to take effect from August 1, pending approval from the UK Parliament.
Piara Lal Seth, the president of the Shawl Club of India, shared that Punjab currently exports shawls to the UK worth around Rs 500 crore each year. He is optimistic that this agreement will enable UK manufacturers to collaborate with Indian companies, enhancing the quality of their products.
The domestic woolen industry, valued at over Rs 300 crore, focuses on producing tweeds, blazers, and blankets. With about 50 factories employing thousands of artisans, the future looks bright following this new agreement.
Seth also mentioned that the UK High Commissioner is set to visit Amritsar on July 31 to participate in an entrepreneur meeting. Discussions will likely focus on supporting exports from this historic city.
Sudarshan Kumar Wadhwa, a long-time manufacturer in the area, noted that demand for exports is expected to rise with the implementation of the FTA. The city produces around 60 lakh meters of tweed annually, catering to the needs of residents in the Kashmir Valley, who wear Phirans, especially during the winter. The city also manufactures coats, bags, and other items.
Blazers from the region are popular for formal occasions, including school events and sports ceremonies, and various printed textiles are being exported to the UK as well.
RC Khanna, chairman of the Wool and Woollens Export Promotion Council, stated that the FTA will greatly benefit the Indian woolen industry. He highlighted that the zero-duty access to the UK market for Indian wool products, including premium pashmina, will be immensely helpful for manufacturers in India.
The agreement is expected to provide much-needed support for micro, small, and medium enterprises in cities like Ludhiana, Amritsar, Panipat, and Kashmir. It aims to enhance export competitiveness, attract investments, and create jobs, aligning with India’s initiatives for high-quality and sustainable exports.
Experts predict that Indian textile exports to the UK could double in the next five to six years. An increase from USD 1.5 billion to USD 5 billion is anticipated once the tariff reductions begin, leading to a strong growth in the export of ready-made garments and textile products.
