India-UK CETA takes effect July 15, zeroing tariffs on apparel, leather and footwear exports

The India-UK trade pact grants duty-free access for Indian apparel, leather and footwear exporters from July 15, with footwear duty falling from 4.5% to 0%. AEPC and FIEO report surging buyer enquiries; apparel exports to the UK could double in two years, sharpening India's edge over Bangladesh, Vietnam and China.

— Source publishedTue, 14 Jul, 2026, 21:20 IST·First seen Tue, 14 Jul, 2026, 21:22 IST·Source The Hindu BusinessLine

What happened

Apparel Export Promotion Council (AEPC) · India-UK CETA takes effect July 15, giving duty-free access to Indian apparel, leather, footwear and textile

Key facts

  • July 15 CETA implementation
  • 4.5% to 0% footwear duty
  • 10% leather/footwear export rise
  • apparel exports could double in 2 years

Why this matters

The duty-free UK gateway strengthens the case for acquiring or partnering with Indian export manufacturers to lock in tariff-advantaged capacity ahead of competitors.

What to watch

  • Q3-Q4 UK apparel/footwear import data by origin
  • New long-term contracts announced by UK retailers with Indian suppliers
  • Indian cluster capacity expansion and labor availability reports
  • Bangladesh/Vietnam-UK trade negotiation progress
  • Rupee and cotton/leather input cost movements
  • Rules-of-origin compliance friction post-July 15
  • Indian exporters (Tirupur/Agra clusters) ramp capex and hiring to absorb UK order flow
  • UK retailers (M&S, Primark, Next, JD Sports) diversify sourcing splits away from Bangladesh
  • AEPC/FIEO push buyer roadshows and compliance/ESG certification support
  • Freight and logistics providers add India-UK apparel lanes
  • Bangladesh/Vietnam lobby for reciprocal UK tariff relief

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