Shares of Gokaldas Exports, Arvind Ltd, KPR Mill, Reymond, and Welspun Living rose up to 12% on Wednesday after India completed discussions on a long-awaited free trade agreement (FTA) with the United Kingdom, opening up new chances for the country’s textile exporters.

The agreement eliminates the UK’s previously charged 8-12% import duty on Indian textiles and garments, giving Indian exporters a competitive advantage over global rivals such as Bangladesh and Vietnam. The move will be a game changer for corporations with a significant export reach.

Export-focused companies, including Gokaldas, Arvind, and KPR Mill, are projected to benefit significantly from the tariff advantage, making their products more competitive in the UK market.

S Ganapathi, Vice Chairman and MD of Gokaldas Exports, said that the FTA gives India a 12% edge over China while levelling the playing field with Bangladesh on apparel tariffs. According to Ganapathi, India’s $1.5 billion in garment exports to the United Kingdom may be greatly enhanced, with a potential annual rise of $1 billion.

The full impact of the acquisition will be felt by FY27, and the UK’s contribution to Gokaldas’ revenue, which is currently around 5%, might double in the coming years.

Bangladesh and China export clothes worth $4 billion and $5 billion, respectively, to the UK, while India falls behind, which this trade agreement might help change.

At 3:30 pm, the shares of Gokaldas Exports closed 11.86% higher, Arvind closed 2.79% higher, KPR closed 8.63% higher, and Welspun Living closed 3.04% higher.

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