Shares of Gokaldas Exports, Arvind Ltd, KPR Mill, Reymond, and Welspun Living surged up to 12 percent on Wednesday after India wrapped up negotiations on a much-anticipated free trade agreement (FTA) with the United Kingdom, unlocking new opportunities for the country’s textile exporters.
The pact scraps the 8–12 percent import duty previously levied by the UK on Indian textiles and garments, putting Indian exporters on a stronger footing against global peers like Bangladesh and Vietnam. Industry watchers see the move as a game-changer for companies with a strong export footprint.
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Export-focused firms such as Gokaldas, Arvind, and KPR Mill are expected to benefit meaningfully from the tariff advantage, which makes their products more price-competitive in the UK market.
According to Gokaldas Exports' Vice Chairman and MD, S Ganapathi who spoke to CNBC TV-18, the FTA levels the playing field with Bangladesh in terms of apparel tariffs, while giving India a 12 percent edge over China. Ganapathi estimates that India's apparel exports to the UK—currently at $1.5 billion—could see a significant boost, with an incremental $1 billion opportunity opening up over time.
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He anticipates the full impact of the deal will be felt by FY27 and sees the UK’s contribution to Gokaldas’ revenue, now at around 5 percent, potentially doubling in the coming years.
Bangladesh and China export apparel worth $4 billion and $5 billion, respectively, to the UK, while India lags—something this trade pact could help change.
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