India-UK Free Trade Deal Set to Shake Global Markets as Pakistan and Bangladesh Face Major Export Pressure

From textiles to rice and pharmaceuticals, India’s tariff gains in UK market threaten Pakistan and Bangladesh exports while boosting Indian global trade dominance from next month

India and the United Kingdom prepare to implement a major Free Trade Agreement from the 15th next month.
Consequently, ‘Made in India’ products will gain stronger presence in the British marketplace. Additionally, the deal represents India’s rising strength in global trade networks.
Moreover, Indian exporters will receive significant tariff relief in the UK market.

Pakistan and Bangladesh face declining export competitiveness in UK

As Indian goods become cheaper, British buyers may shift preferences toward India. Therefore, Pakistan and Bangladesh could lose established market share in the UK. Specifically, Bangladesh may face nearly six percent export disruption in Britain.
Meanwhile, Pakistan could experience around two percent export decline impact.

 Textile sector emerges as biggest battleground in UK trade shift

Textile industry stands as the most affected sector in this trade realignment. Bangladesh holds strong presence in UK ready-made garment exports.
However, Indian textile products gaining tariff advantage may disrupt this balance. Furthermore, Bangladesh’s nearly 298.2 million dollar exports face serious risk exposure.
Notably, about 288.3 million dollars of this comes from textile category alone.

 Rice exports highlight widening gap between India and Pakistan

India continues strong dominance in global rice export markets. In 2025, India exported 149.8 million dollars worth rice to the UK. Conversely, Pakistan managed only 43.3 million dollars in the same category.
Additionally, India recorded 94.5 million dollars in another rice segment. Therefore, lower tariffs may further reduce Pakistani competitiveness in Britain.

 Pharma and processed food sectors strengthen India’s global position

Beyond textiles and rice, India also expands influence in pharmaceuticals and food sectors. Drug formulation exports alone exceed 880 million dollars for India. With reduced tariffs, Indian pharmaceutical companies gain wider expansion opportunities in Britain.
Consequently, experts believe the agreement reshapes Asia’s overall export structure significantly.