Commerce Ministry Engages Textile, Leather & Footwear Sectors On India–UK CETA Opportunities

New Delhi, July 29 (KNN) The Department of Commerce, Ministry of Commerce and Industry, convened a stakeholder interaction in New Delhi on Monday with representatives from India’s textiles, leather, and footwear sectors to discuss trade and investment opportunities arising from the recently signed India–UK Comprehensive Economic and Trade Agreement (CETA).

In a message to the gathering, Union Minister of Commerce and Industry Piyush Goyal described the agreement as a transformative opportunity for these labour-intensive industries. 

He said the landmark deal paves the way for a sharp surge in exports, particularly for India’s textiles sector.

Commerce Secretary Sunil Barthwal underlined the agreement’s potential to spur inclusive growth and job creation, particularly by empowering Micro, Small and Medium Enterprises (MSMEs). 

He also highlighted the global exposure the deal offers to Indian artisans and manufacturers.

Participants in the consultation included major industry bodies and institutions such as the Council for Leather Exports (CLE), Confederation of Indian Industry (CII), Confederation of Indian Footwear Industry (CIFI), Indian Footwear Components Manufacturers Association (IFCOMA), Footwear Design and Development Institute (FDDI), Central Leather Research Institute (CLRI), and several textile export promotion councils. 

Senior officials from the Ministries of Textiles, Commerce, and Industry, along with the Bureau of Indian Standards (BIS), Directorate General of Foreign Trade (DGFT), Department of Revenue, and DPIIT, were also present.

The agreement grants Indian textiles and clothing products duty-free access to the UK market, effectively removing tariff disadvantages of up to 12 percent that Indian exporters previously faced compared to competitors like Bangladesh, Cambodia, and Pakistan. 

This is expected to significantly benefit segments such as ready-made garments, home textiles, carpets, and handicrafts, and boost export volumes from major textile hubs including Tirupur, Jaipur, Surat, Ludhiana, Panipat, Bhadohi, and Moradabad.

On the leather and footwear front, CETA eliminates UK import duties—previously ranging from 2 percent to 8 percent for leather goods, 4.5 percent for leather footwear, and 11.9 percent for non-leather footwear. 

The removal of these tariffs is projected to nearly double India’s exports in the segment from USD 494 million in 2024 to USD 1 billion within three years. 

This is expected to benefit MSMEs and increase employment across key manufacturing hubs, particularly among artisans, women entrepreneurs, and youth-led enterprises.

In addition to tariff relief, the agreement includes provisions for simplifying customs procedures, aligning technical standards, and protecting Indian Geographical Indications (GIs), such as Kolhapuri footwear and Mojari. 

These measures are expected to enhance product visibility in the UK’s USD 8.7 billion leather and footwear market and strengthen the global positioning of Indian brands.

CETA also promotes sustainability and encourages Indian MSMEs to adopt digital technologies, integrate into global value chains, and expand their e-commerce presence. 

Complementary government schemes such as the Indian Footwear and Leather Development Programme (IFLDP), with an outlay of Rs 1,700 crore, and a proposed Focus Product Scheme for the sector aim to drive technology upgrades, build mega clusters and design studios, and support global brand building.

Representatives from export promotion councils and industry associations welcomed the trade agreement, stating that it levels the playing field for Indian exporters and enhances competitiveness. 

They also emphasised the need for timely follow-up measures to ensure that the industry fully leverages the benefits of the FTA.

(KNN Bureau)

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