India-UK FTA
As part of the FTA, UK import duties on textile and garments, which were earlier between 8% to 12%, will now become zero. UK’s textile imports stood at $28.7 billion, while Indian textile exports into UK stood at $1.5 billion.
India-EU FTA
Additionally, the The India-EU FTA will also be signed this year-end, granting zero duty access to a $236 billion market.
The European Union (EU) is India’s second-largest export destination for textiles and apparel. India currently exports $5 billion worth of textile and garments to the EU.
Impact of FTAs
Duty free access would boost competitiveness in comparison to Bangladesh, Vietnam, Cambodia.
Bangladesh and Cambodia do not pay any tariffs on exports of textile products to the UK and EU. Ready-made garments, home textiles, carpets are key areas where India can gain competitive advantage.
With the FTA, India expects to gain 5% additional market share in the next two years in the UK, and a 50% – 100% increase of textile exports to the EU over the next five to seven years post the FTA.
Key beneficiaries
Gokaldas Exports and KPR Mills are key beneficiaries in garments. The former has 6% exposure to Europe while for KPR Mills, Europe (including UK) makes up 58% of its revenue.
For home textiles, Indo Count Industries, Pearl Global and Welspun Living are the key beneficiaries. While Indo Count Industries and Pearl Global have a 4% – 5% UK exposure, Welspun Living’s UK and EU exposure was 18% in financial year 2025.
Stock reactions
Shares of Gokaldas Exports are trading 4.8% higher at ₹764.95 on Thursday, while Welspun Living are trading 5.7% higher at ₹155.
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