Surat (Gujarat) [India], July 15 (ANI): The India-UK Free Trade Agreement (FTA) is expected to provide a much-needed boost to India's textile and garment industry by improving export competitiveness, generating employment and helping Indian manufacturers compete more effectively with rivals such as Bangladesh and Vietnam, local industry representatives said.

Speaking with ANI, Rangnath Sharda, a textile businessman and producer, said India will likely overtake Bangladesh and Vietnam following the India-UK FTA.

'Our domestic business will accelerate. People will get employment and workers who were sitting at home will return to work,' he said.

Calling Surat the largest man-made fibre textile hub in Asia, Sharda said the industry had been facing a prolonged slowdown and had struggled to compete with Bangladesh and Vietnam in global markets.

'For a long time, we were going through a bad phase, and with this free trade agreement, we will get the benefit that for a long time, we were not able to compete Vietnam and Bangladesh,' he said.

Garment manufacturer Takhat Mal Jain said the agreement would significantly increase direct exports from Surat, particularly of garments and traditional apparel such as chaniya cholis.

Jain added that exports to the UK had remained limited because of import duties, but the removal of tariffs under the FTA would substantially increase shipments. He said the agreement would also support the growth of Surat's emerging garment manufacturing sector.

Textile businessman Lalit Sharma said the reduction in duties would make Indian garments much more affordable in the UK market, boosting demand.

'Approximately 35% of the duty was being done in the UK. If 35% of the cost is cut, India's clothes will become cheap bringing more demand,' Sharma said, underlining strong demand as there are many Indians living in the UK.

'When India's clothes will become 35% cheaper,' he said, 'people from Asian countries will prefer India's clothes...we will be able to export directly.' (ANI)