India-UK FTA: A game-changer for Indian couture? Sanjay Nigam weighs in : source ECONOMIC TIMES
For centuries, India has been a pioneer in fashion, renowned worldwide for its handwoven fabrics, heritage craftsmanship, intricate designs, and symbolic artistry in couture. While a handful of Indian designers have gained international acclaim, the broader fashion industry has struggled to achieve sustained global success
Few understand this industry shift better than Sanjay Nigam, the founder of the Fashion Entrepreneur Fund (FEF) and the FEF India Fashion Awards (FEF IFA). Having worked closely with designers, investors, and industry leaders, he sees the FTA as a pivotal moment, one that could redefine Indian fashion’s global standing and unlock unprecedented opportunities.
“For too long, Indian fashion has been constrained by trade barriers that limit its reach and competitiveness,” Sanjay states. “This agreement is not just about trade policies, it’s about recognition, opportunity, and India’s rightful place in the global fashion landscape.”
With the negotiations now in their 15th round, the India-UK FTA is edging closer to finalisation, bringing immense potential for emerging startups and entrepreneurs. Eliminating trade barriers could be a game-changer, allowing young fashion labels to compete globally, attract investment, and scale like never before.
While a few renowned designers such as Sabyasachi Mukherjee and Gaurav Gupta have carved out space in the global luxury market, the broader industry has struggled due to restrictive tariffs. Sanjay believes this FTA could correct the imbalance. “For years, Indian designers have battled high tariffs while European brands entered the UK market freely. This FTA changes everything. Indian labels will no longer be at a pricing disadvantage—they will finally compete on equal ground.”
India’s textile and apparel sector is among the largest in the world, supporting millions of weavers, artisans, and designers. Nigam believes that removing trade barriers could open up substantial new opportunities, driving job creation, increasing investment, and strengthening the supply chain. “Indian fashion is more than just an industry, it’s a legacy of craftsmanship passed down through generations,” Sanjay emphasises.“From handloom textiles to intricate embroidery, these are not just products; they are stories woven into fabric. The FTA will ensure these stories reach the global audience they deserve.”
As the global fashion industry moves towards sustainability and ethical production, Sanjay suggests that India has a natural advantage due to its long-standing traditions of eco-friendly textiles. “From plant-based dyes to handwoven fabrics, India has been practising sustainability for centuries,” Sanjay shares. “With the right trade agreements in place, we can take the lead in the global movement towards conscious fashion.”
As the India-UK FTA moves towards its final stages, Nigam urges the Indian fashion industry to prepare for expansion. Whether it’s emerging designers aiming to establish an international presence or heritage brands looking to scale globally, this agreement could be the stepping stone Indian fashion has been waiting for.
Diversify now: On India and looming economic risks : SOURCE ( THE HINDU )
February’s sharp rise in the monthly services Purchasing Managers’ Index (PMI), to 59, has provided a welcome relief to investors and policymakers, following the rise in GDP growth numbers, released by the National Statistical Office (NSO) for the December quarter of the current fiscal (Q3FY25). The strong rebound in the services PMI, up from 56.5 in January, which marked a 25-month low, helped offset the decline in the manufacturing PMI, which fell to a 14-month low of 56.3 in February. A PMI reading above 50 signals expansion, while anything below this indicates contraction.
The PMI survey, conducted every month by S&P Global across over 40 countries, is a key indicator of economic momentum. The fact that manufacturing and services — sectors that have accounted for about 80% of India’s GDP since 2010 — remain in expansion mode is positive. This resilience persists despite capital outflows from Indian markets, suggesting that the country’s economic fundamentals remain strong.
A more telling indicator of long-term economic strength is the quarterly earnings of the Sensex, India’s benchmark index comprising 30 of the most valued and actively traded companies on the Bombay Stock Exchange (BSE). The Q3FY25 results point to solid net profit growth for nearly all firms.
However, looming economic risks remain. The threat of reciprocal tariffs announced by United States President Donald Trump, and set to take effect on April 2, poses a challenge for the manufacturing sector. Meanwhile, the services sector is facing a different disruption: the rapid pivot to artificial intelligence (AI)-driven solutions. While the NSO reported 6.2% real GDP growth for Q3FY25, top executives from India’s leading IT firms have, at an industry event in Mumbai, cautioned that growth in the sector could be as low as 5.1% in FY25, up from 3.8% in FY24.
Although this may seem concerning for an industry that has enjoyed a 16% compounded annual growth rate for nearly 25 years, it still represents an increase of $29 billion, bringing the sector’s expected value to $283 billion in FY25.
In its 2025 Strategic Review report, NASSCOM has identified geopolitical upheavals and rising tariffs as key challenges. But business leaders at the event attributed much of the slowdown to the disruptive impact of AI, which is reducing earnings from new contracts and reshaping hiring and training practices. India’s services and manufacturing sectors face a triple challenge: rapid technological transformation, increasing global protectionism, and the potential for a U.S. recession. This could have significant repercussions for India, given that the U.S. remains its largest trading partner. To navigate these headwinds, India must urgently diversify its trading base.