India's trade deals with the UK and the EU: what apparel buyers need to know

Information as of 12 November 2026.

Since 15 July 2026, qualifying clothing made in India enters the UK duty-free. The EU has concluded its own agreement with India, which is expected to remove EU duties on Indian apparel once it comes into force, targeted for mid-2027. For buyers in both markets, India's landed cost is moving closer to that of the countries that already had duty-free access.

At a glance

The UK: duty-free since July

The UK–India agreement was signed on 24 July 2025 and came into force on 15 July 2026. Before that, Indian clothing paid UK import duty of up to 12%, while suppliers in Bangladesh and Pakistan already entered duty-free under UK preference schemes.

The agreement removes duty on 1,143 textile tariff lines, covering ready-made garments, dresses, blouses, T-shirts and home textiles. On a garment with a customs value of £20, a 12% duty added £2.40 per piece. On qualifying goods, that cost is now gone.

The EU: concluded, not yet in force

India and the EU concluded negotiations on 27 January 2026, after nearly two decades of talks. Indian apparel currently pays 12% duty in the EU, while Bangladesh, Turkey, Vietnam and Pakistan already have duty-free access. The agreement removes tariffs on 100% of apparel tariff lines.

The text is now going through legal review. A signing ceremony is planned for mid-December 2026, followed by a consent vote in the European Parliament, expected by spring 2027. Entry into force is targeted for mid-2027. Until then, standard EU duties continue to apply.

Rules of origin: where the detail matters

Duty-free treatment applies only to goods that qualify as originating in India. Labelling, packing or pressing in India is not enough on its own; the garment must be substantially made there.

Under the UK agreement, a garment made in India from imported fabric can still qualify, provided the cutting and sewing turn fabric into a finished garment and the product meets a value-content requirement. The exact rule depends on the product's tariff code and is set out in Annex 3A of the agreement. Origin is claimed through a declaration completed by the exporter, and supporting records must be kept for at least five years.

The EU's product rules will be confirmed when the final text is published. Until then, it is too early to say exactly which fabric routes will qualify.

What buyers should do now

• UK buyers: check that your customs broker is claiming the preferential rate on Indian shipments, and ask suppliers for the origin declaration with each shipment.

• EU buyers: plan development now for deliveries from mid-2027, and ask suppliers how their fabric sourcing will meet the EU origin rules.

• Both: keep fabric and trim sourcing records for every style. They are what a customs check will ask for.

How we handle it

We make garments in our own facilities in Noida, from fabric through to finished piece. For UK orders, we provide the origin declaration and the production records behind it. For EU orders, we will confirm the documentation once the agreement's final rules are published, well ahead of entry into force.

Trade terms change. This article reflects the position on 12 November 2026; please check the current rules with your customs broker before relying on them.

Sources

• UK Government: Rules of origin under the UK–India trade agreement

• FashionUnited: What the India-UK trade agreement means for the fashion industry (17 July 2026)

• Apparel Resources: India–EU FTA and what it means for textiles and apparel (27 January 2026)

• Swarajya: India and EU prepare for December signing (2 November 2026)