Gokaldas Exports, KPR Mill, Arvind Fashion Shares Rally Up to 12% After India-UK FTA Boost

Market Movement Highlights

Shares of key textile players—Gokaldas Exports, KPR Mill, and Arvind Fashion—saw a sharp surge of up to 12% in Wednesday's trade. This rally came after India finalized its much-awaited Free Trade Agreement with the United Kingdom, unlocking fresh momentum for textile exports.

Other textile stocks, such as Reymond and Welspun Living, also recorded notable gains, reflecting a broad-based bullish sentiment in the sector.

UK FTA Sparks Fresh Export Hopes

The recently concluded India-UK FTA removes the 8–12% import duty previously levied on Indian textile and garment exports to the UK.

This significant policy shift now puts Indian exporters on par with key global competitors like Bangladesh and Vietnam, which already enjoy preferential access.

Key Points:

• Indian apparel exports to the UK currently stand at $1.5 billion.
• The FTA opens up an incremental $1 billion export opportunity.
• Indian exporters now gain a 12% cost advantage over China in the UK market.

The textile industry views this as a turning point, especially for companies with substantial overseas exposure.

Company-Specific Impacts

Gokaldas Exports

• The company anticipates doubling its UK revenue contribution, which currently stands at 5%.
• Management expects to realize the full benefits of the FTA by FY27.
• With the UK offering better tariff parity, Gokaldas sees improved competitiveness for its product lines.

KPR Mill

• As an export-focused player, KPR Mill is expected to benefit significantly from removing UK tariffs.
• The move enhances its pricing edge in global markets, particularly in Europe.

Arvind Fashion

• Arvind Ltd, known for its global retail partnerships and fabric exports, also stands to gain from improved market access and margin expansions.

Comparative Export Landscape

• India currently exports $1.5 billion worth of apparel to the UK.
• Bangladesh and China, by contrast, export $4 billion and $5 billion, respectively.
• The new trade deal aims to close this gap and help Indian firms tap into a larger share of the UK's apparel market.

Summary

The India-UK Free Trade Agreement has triggered a strong rally in textile stocks, with Gokaldas Exports, KPR Mill, and Arvind Fashion shares climbing up to 12%.

With the removal of import duties and improved cost competitiveness, Indian exporters are better positioned to scale their presence in the lucrative UK market. This strategic policy change could mark a new chapter in the growth story of India's textile industry.