The Comprehensive Economic and Trade Agreement (CETA), the India–United Kingdom Free Trade Agreement, was signed yesterday (24th July 2025) by Piyush Goyal, Minister of Commerce and Industry of India, and Jonathan Reynolds, Secretary of State for Business and Trade, UK, in the presence of Narendra Modi, Prime Minister of India, and Keir Starmer, Prime Minister of the United Kingdom.
In a press release issued today, Sundararaman, Chairman of The Southern India Mills’ Association (SIMA), thanked and congratulated Prime Minister Narendra Modi, Minister Piyush Goyal, and Minister of Textiles Giriraj Singh for this landmark and pathbreaking achievement.
He expressed gratitude to the Government for giving a significant boost to the textile sector and for securing zero-duty access, which was previously subject to tariffs of up to 12 percent. He noted that the bilateral trade between the two countries currently stands at nearly US$56 billion and is expected to double by 2030.
The textile sector—particularly ready-made garments and made-up textiles with minimal import content—is likely to contribute a larger share to this growth, the chairman added.
Sundararaman highlighted that the unique policies introduced by the Government of India to promote exports—such as the National Technical Textile Mission (NTTM), the Production Linked Incentive (PLI) Scheme, and, most notably, the PM MITRA Scheme—are expected to attract significant investment and generate employment for lakhs of people in the coming years, leveraging the India–UK CETA.
He further stated that the recently launched Mission for Cotton Productivity scheme would substantially enhance cotton textile exports.
He pointed out that Tamil Nadu, being the largest textile manufacturing state in the country with nearly one-third of the total capacity, is poised to be the major beneficiary. Exporting clusters like Tiruppur and Karur are expected to witness tremendous opportunities for exponential growth.
He mentioned that export orders for cotton knitted garments and kitchen linen have already shown an upward trend, reinforced by long-term business commitments following the announcement of the conclusion of India–UK FTA negotiations on 6th May 2025.
The SIMA Chairman also noted that the progressive policies announced by the Government of Tamil Nadu for sustainable cotton development, modernisation, and technological upgradation across various segments of the textile industry—including the Virudhunagar PM MITRA Park—will further strengthen the Tamil Nadu textile sector, enabling it to capitalise on the emerging opportunities offered by FTAs.
