India, Oct. 6 -- The US tariffs will bite India's textile sector - exports to the US stand at $10.7 billion annually, and some estimates project a 40% decline, as exports become more expensive. Given this, India's textile sector badly needs new markets. The imperative for this is spelled out by the fact that the sector contributes 2.3% to the GDP, accounts for 13% of industrial production, and comprises 12% of the country's total exports. Employing over 45 million, many of them rural women, it is second only to agriculture in terms of livelihoods. Against this backdrop, can the Comprehensive Economic and Trade Agreement (CETA), signed by India and the UK in July and expected to be implemented in early 2026, offset some of the hurt? Under CETA, the UK will eliminate tariffs on several labour-intensive Indian exports, leading to significant market access gains. Despite facing a 9% import duty in the UK so far, India managed to secure a 6% share in its readymade garment imports, exporting goods worth approximately $1.2 billion annually. With the elimination of tariffs, shipments to the UK are projected to increase by 30-40%. However, zero-duty access alone will not automatically guarantee an increase in exports. The India-Japan Comprehensive Economic Partnership Agreement (CEPA) is a case in point. Despite similar concessions, Indian textiles struggled to find a footing in Japan's highly structured and quality-conscious market. In the UK too, India is seeking to expand in a playing field dominated by China, Bangladesh, and Vietnam - countries with well-entrenched supplier relationships, agile production cycles, and cost structures that are difficult to match. Several of them also enjoy zero-duty access, which could effectively neutralise India's advantage under CETA. Therefore, the challenge lies in whether Indian textile exporters can match or outperform such global competitors in speed, quality, and reliability. Moreover, while tariff walls fall under CETA, non-tariff barriers will continue to pose stiff challenges. The UK has been steadily tightening its regulations on sustainability, labour rights, and carbon emissions. Standards compliance, traceability, and carbon labelling are becoming decisive factors for gaining market access. Indian firms will therefore need to invest in eco-friendly technologies, follow the rulebook on transparent and ethical supply chains, and comply with internationally accepted standards. Without these, tariff concessions will offer only marginal gains. Encouragingly, though, India's textile sector has not been left without policy support. The Production Linked Incentive (PLI) scheme for textiles, Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) parks, the Textile Cluster Development Scheme (TCDS), the Amended Technology Upgradation Fund Scheme (ATUFS), the National Technical Textiles Mission (NTTM), and the Samarth skilling programme, all seek to address infrastructure gaps, modernise production, and strengthen the workforce. If implemented effectively, they could raise the industry's annual growth rate to 15-20% over the next five years. India's textile strategy must be guided by more than just capital outlays. High-frequency, granular data on export trends, buyer requirements, compliance gaps, and global demand patterns must inform both public policy and private strategy. The stakes are particularly high for regional textile clusters. Nearly 80% of India's textile production is concentrated in MSME clusters. Tamil Nadu alone accounted for $7.99 billion in textile exports in 2024-25, equivalent to 26.8% of India's total, followed by Gujarat (18.9%) and Maharashtra (12.8%). Hubs like Tiruppur, Coimbatore, and Erode in Tamil Nadu are already known for their export-oriented ecosystems, combining skilled labour with infrastructure and entrepreneurial dynamism. With CETA in place, Tiruppur's knitwear, for instance, could find a broader market in Manchester, but only if Indian exporters can match the quality, timelines, and sustainability benchmarks of global competitors. Equally important will be shifting from factor-driven growth - based on low-cost labour and raw material availability - to value-driven expansion. High-margin segments like technical textiles for health care, defence, and mobility present untapped potential. These offer scope for innovation and brand-building, with less competition from low-cost producers. To that end, enabling MSMEs and start-ups to innovate, digitise, and upgrade practices shall be vital. Collaborations with the creative industries, digital integration with e-commerce platforms, and co-branding with UK retailers could amplify India's positioning and reach in these premium segments. Whether CETA proves to be a game-changer for Indian textiles will depend on how effectively the country navigates the post-tariff terrain - where cost shall matter, but credibility will matter more; where speed shall help, but standards will seal the deal....