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Gokaldas Exports, Arvind, other textile stocks rise up to 19% after India-UK sign FTAAs part of the deal, the 8–12% UK import duty on textiles and garments will be eliminated, making Indian exports more competitive compared to countries like Bangladesh and Vietnam.By Meghna Sen    | Vinnii Motiwala   May 7, 2025, 12:17:14 PM IST (Updated)2 Min ReadShares of Gokaldas Exports Ltd., Arvind Ltd., and KPR Mill Ltd. are trading with gains of up to 19% on Wednesday, May 7, after India and the United Kingdom concluded negotiations for a landmark free trade agreement (FTA).

As part of the deal, the 8–12% UK import duty on textiles and garments will be eliminated, making Indian exports more competitive compared to countries like Bangladesh and Vietnam.

This is seen as a positive development for companies like Gokaldas, Arvind, and KPR, which are active in textile exports.

Speaking to CNBC-TV18, S Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, said the UK-India trade deal will help the company compete more effectively with Bangladesh. He expects the full benefits of the UK FTA to materialise by FY27, and believes the UK’s contribution to revenue, which currently stands at 5%, could potentially double going forward.

Ganapathi sees a $1 billion incremental export opportunity for Indian apparel in the UK market. With the FTA, India is now on par with Bangladesh in terms of apparel tariffs and enjoys a 12% tariff advantage over China. For context, Bangladesh’s apparel exports to the UK are valued at $4 billion, China’s at $5 billion, while India’s currently stand at $1.5 billion.

UK Imports from India  2024ValueArticles of apparel, knit or crocheted$556.55MOther made textile articles, sets, worn clothing$263.34MTextile fibers not specified elsewhere, yarn, woven fabric$24.47M

Source: Trading economics

According to IIFL Securities, Gokaldas Exports’ FY24 revenue is geographically distributed as follows —

America – 81%

Europe – 6%

Asia – 13%

The FTA marks the first major trade pact between India and the UK and aims to double bilateral trade to $120 billion by 2030. Bilateral trade already rose from $20.36 billion in FY23 to $21.34 billion in FY24.

Indian exports to the UK are expected to rise sharply by 2027, particularly in apparel, auto components, and chemicals, thanks to the preferential terms under the FTA.

One of the key aspects of the FTA is the double contribution convention, which has been hailed as a game-changer for Indian workers in the UK.

The double contribution convention is a key component of the India-UK FTA, designed to prevent individuals from paying double social security contributions when they work or live in both countries. Social security contributions are payments made by workers and employers to fund pensions, healthcare, unemployment benefits, and other welfare programmes.Continue ReadingFirst Published: May 7, 2025 7:28 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsArvind LtdFree Trade Agreement (FTA)Gokaldas Exports