The Hidden Clause in the India–UK FTA: the Risk Indian Exporters are Taking and How Green Story Mitigates It

The recently signed India–UK Free Trade Agreement (FTA) is being hailed as a game-changer for Indian textiles, and rightly so. By eliminating nearly all tariffs on textile and apparel exports to the UK, the deal removes a key barrier that has long made Indian garments less competitive compared to those from Bangladesh, Vietnam, and Turkey. For many exporters, it feels like a long-awaited green light to scale operations, tap into premium retail networks, and reclaim India’s legacy as a global textile leader.

But here’s the catch: this isn’t just about accessing more markets. It’s about meeting higher expectations.

UK buyers are evolving, and fast. Price and turnaround time still matter, but they are no longer enough. Increasingly, UK agencies and consumers are holding retailers and brands accountable for the environmental and social impact of their supply chains. Where was the cotton grown? Was the dyeing process clean or chemically intensive? What are the garment’s carbon emissions? Can this be recycled or reused?

The FTA might clear the path for more Indian textiles to enter the UK, but the journey doesn’t end at customs. It continues in the minds of buyers who are actively seeking proof; of sustainability, of traceability, of responsibility. And this shift isn’t subtle; it’s shaping procurement decisions in boardrooms and buying departments across the UK and regulations are evolving to meet this shift.

The UK is tightening its grip on sustainability claims in fashion, and textiles are squarely in the frame. Since September 2021, the Green Claims Code has required that all environmental messaging whether on product labels, websites, or marketing be made clear, specific, and backed by solid evidence. In 2024, the UK’s Competition & Markets Authority (CMA) escalated enforcement in the fashion sector, calling on major retailers like ASOS, Boohoo, and George at Asda to drop vague terms like “eco-friendly” and “sustainable” unless precisely defined and verified. Claims such as “recycled” or “organic” now need to be quantified, and even visual cues, like green leaves or nature imagery must not imply impact reductions that can’t be proven.

But these rules aren’t just brand-facing, they’re rippling across the supply chain. As UK retailers adapt to these requirements, they’re leaning heavily on manufacturers to supply product-level data, traceability information, and credible impact metrics. Meanwhile, the Carbon Border Adjustment Mechanism (CBAM), launching in January 2027, is putting carbon transparency on the long-term agenda. While textiles aren’t included in the initial scope, their complex and high-emission production processes make them likely candidates for future inclusion. Indian exporters, especially those eyeing long-term buyer relationships, need to be ready not just with sustainable practices, but with the evidence to prove them.

For Indian manufacturers and exporters, this creates both a challenge and a window of opportunity. The challenge is obvious: rapid scaling can bring unintended environmental consequences. Increased water consumption, carbon emissions, unmanaged waste, and pressure on labour systems are very real risks when growth is pursued without guardrails. But the opportunity lies in confronting these risks head-on by embedding sustainability into the DNA of how products are made, marketed, and sold.

This is where the narrative changes. Rather than seeing sustainability as a compliance burden or a marketing afterthought, Indian textile players have a chance to make it a competitive advantage. And they don’t have to do it alone.

At Green Story, we’ve spent years working with brands and manufacturers across the globe to measure and communicate the environmental impact of their products. From lifecycle assessments to digital product passports, our tools help suppliers track their supply chain data, identify hotspots for improvement, and turn those insights into compelling, verifiable stories.

Green Story offers textile exporters a unified framework to navigate the growing complexity of sustainability demands while combining measurement, readiness, and communication in one platform. At the core is the ability to analyse accurate, product-level information through Product Carbon Footprints (PCFs) and Life Cycle Assessments (LCAs), which then is the data that increasingly forms the backbone of regulatory compliance. Beyond the product, we support corporate footprinting efforts across Scopes 1, 2, and 3, helping suppliers align with internal decarbonization goals as well as market-facing disclosures.

Impact doesn’t stop at numbers; it extends to how prepared a supplier is to act on them. That’s why Green Story supports brands and manufacturers with structured training programs, hands-on onboarding, and ongoing assistance to improve data quality and readiness, especially as reporting expectations move deeper into the supply chain.

Indian exporters who can demonstrate impact reduction be it through lower water use, energy efficiency, or circular design will find themselves better positioned to build stronger, longer-lasting relationships with UK buyers.

And this isn’t just for the big players. Small and mid-sized exporters, especially in clusters stand to benefit most from the FTA, but they’re often the ones without access to expensive consulting services or in-house sustainability teams. Green Story bridges that gap, offering data-driven insights and easy-to-deploy digital storytelling tools that let even smaller suppliers prove their progress.

Because at the end of the day, the garments that make it to UK shelves won’t just be evaluated on price and style. They’ll be judged on their footprint, their story, and the trust they inspire.

The India–UK FTA is more than a trade deal. It’s a signal that the future of textile exports isn’t just in moving more products, but in moving them better. With sustainability as the new currency of credibility, Indian exporters have a rare chance to lead—not just in volume, but in values. Green Story is here to ensure they don’t just make the journey, but own it.