Textile company stocks are in the limelight today morning. In fact Gokaldas Exports leads the pack and is also the top gainer on the BSE, rising more than 11% to hit an intraday high at Rs.948.

This is thanks to the India-UK FTA agreement signed. It is a comprehensive trade pact aimed at enhancing economic ties between the two nations. Set to take effect in 2026, the agreement is expected to significantly reduce tariffs on a wide range of goods and services, fostering increased trade and investment.

Key Provisions of the India–UK FTA

• Tariff Reductions: The FTA will eliminate tariffs on 99% of Indian exports to the UK, including textiles, apparel, food, and jewelry. Conversely, the UK will reduce tariffs on 90% of its exports to India, covering products like whisky, automobiles, and machinery
• Enhanced Trade Volume: The agreement aims to boost bilateral trade by £25.5 billion annually by 2040, enhancing economic cooperation between the world's fifth- and sixth-largest economies.
• Labor Mobility: Indian professionals in sectors such as music, cuisine, and yoga will benefit from improved visa access to the UK. Additionally, temporary Indian workers will be exempt from UK national insurance contributions for three years.

Textile Companies Expected to Benefit

Several Indian textile companies are well-positioned to capitalize on the opportunities presented by the FTA:

• Gokaldas Exports: As a leading apparel exporter, Gokaldas Exports stands to gain from increased demand for its products in the UK market due to the elimination of import duties. The company's existing infrastructure and experience in exporting to international markets position it to leverage the benefits of the FTA effectively.
• Arvind Limited: Known for its denim and shirting fabrics, Arvind Limited can expand its market share in the UK by offering competitively priced products, thanks to the reduction in tariffs.
• Welspun India: A major player in the home textiles segment, Welspun India can enhance its exports of bed linens and towels to the UK, benefiting from the duty-free access provided by the FTA.
• Vardhman Textiles: Specializing in yarn and fabric production, Vardhman Textiles can tap into the UK's demand for quality textiles, with reduced tariffs making its products more attractive to UK buyers.
• Page Industries: The exclusive licensee of Jockey International in India, Page Industries can expand its exports of innerwear and activewear to the UK, capitalizing on the FTA's provisions.