Textile Stocks Gain As India-UK Trade Pact Set To Take Effect From July 15

Shares of textile and apparel exporters with significant exposure to the UK market advanced on June 18 after India and the United Kingdom announced that their free trade agreement will become operational from July 15.

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Welspun Living led the gains, rising 5.2% to ₹154.31. Gokaldas Exports climbed 4.3% to ₹761, while Kitex Garments added 3.8% to ₹160.99. KPR Mill gained 2.5% to ₹1,068. Arvind traded largely unchanged at ₹497.85, and Raymond edged up 0.1% to ₹592.55.

The rally followed confirmation that the Comprehensive Economic and Trade Agreement (CETA) between India and the UK will come into force next month. The agreement, signed last year, marks India’s first bilateral trade pact with a European or Western nation.

Zero-Duty Access For Key Export Sectors

Under the agreement, a broad range of Indian products, including textiles sector, garments, electronics, chemicals, pharmaceuticals sector, toys and gems and jewellery, will receive duty-free access to the UK market.

For labour-intensive sectors such as textiles and apparel, existing tariffs of up to 12% imposed by the UK will be eliminated. Duties on engineering goods, auto components, leather products, footwear, marine products, processed food and pharmaceutical products are also set to be removed.

According to the government, nearly 99% of tariff lines, covering almost the entire value of India’s exports to the UK, will eventually become duty-free under the agreement.

Exporters Seen Benefiting From Improved Market Access

The removal of tariffs is expected to enhance the competitiveness of Indian manufacturers by reducing costs for buyers in the UK. Companies engaged in textiles, apparel and home furnishings are expected to be among the key beneficiaries, as these categories account for a sizeable share of India’s exports to Britain.

Welspun Living, Gokaldas Exports and KPR Mill derive a part of their revenues from overseas markets, making them sensitive to changes in trade policies and import duties.

India’s exports to the UK are currently dominated by gems and jewellery, engineering products, petroleum goods, pharmaceuticals, textiles and electronics.

Trade Deal Opens New Opportunities

The agreement is expected to widen market access for Indian exporters and support labour-intensive industries. Lower tariffs could also help domestic manufacturers compete more effectively with suppliers from other countries in the UK market.

The formal rollout of the pact from July 15 is likely to be closely tracked by export-oriented companies, as the agreement provides a framework for expanding trade ties between the two countries and strengthening India’s position in key overseas markets.