In 2024, the UK imported $556.55 million worth of knitted or crocheted apparel from India, followed by $263.34 million in other textile articles, including worn clothing. Imports of textile fibers, yarn, and woven fabric stood at $24.47 million, highlighting the UK’s strong demand for Indian garments and textile products.
On Wednesday, shares of a textile company surged sharply after India and the UK finalized a landmark free trade agreement (FTA). The deal includes the removal of the 8–12 percent UK import duty on textiles and garments, enhancing the competitiveness of Indian exports over rivals like Bangladesh and Vietnam in one of India’s key overseas markets.
The India-UK FTA, the first major trade pact between the two nations, aims to double bilateral trade to $120 billion by 2030. Trade rose from $20.36 billion in FY23 to $21.34 billion in FY24. Indian exports, especially apparel, auto components, and chemicals, are expected to surge by 2027.
A key feature of the India-UK FTA is the double contribution convention, which prevents workers from paying social security contributions in both countries. Hailed as a game-changer for Indian professionals in the UK, it eases financial burden while ensuring access to welfare benefits like pensions, healthcare, and unemployment support.
Here are the Textile Stocks that jumped upto 19% after India and the UK finalized a landmark free trade agreement;
1. Gokaldas Exports Ltd
With a market capitalization of Rs 6,957.62 crore, the shares were trading at Rs 973.55 per share, increased around 19 percent as compared to the previous closing price.
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 percent, 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 percent 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.
As per IIFL Securities, Gokaldas Exports’ FY24 revenue was heavily reliant on the American market, which contributed 81 percent of total revenue. Europe accounted for 6 percent, while Asia contributed 13 percent. This highlights the company’s strong dependence on the U.S. market for its export-driven textile business.
2. KPR Mill Ltd
With a market capitalization of Rs 37,262.85 crore, the shares were trading at Rs 1,090.15 per share, increased around 10 percent as compared to the previous closing price.
Europe remained the largest export destination, peaking at 60.8 percent in FY23 before dipping to 56 percent in 9MFY25. North America’s share rose to 22.1 percent in 9MFY25. Australia maintained stability around 16 percent, while Asia saw a sharp decline from 8.6 percent in FY21 to 4.4 percent. “Others” rose slightly to 1.6 percent.
3. Arvind Ltd
With a market capitalization of Rs 9,937.30 crore, the shares were trading at Rs 378.80 per share, increased around 6 percent as compared to the previous closing price.
In Q3 FY25, robust volume growth was recorded across all segments. Wovens rose to 35 million meters (exports 22M, domestic 13M), denim volumes reached 12M meters (exports 6.6M, domestic 5.4M), and garment volumes stood at 9.3 million pieces, up from 7.7 million in Q3 FY24, reflecting strong market momentum.
Written by Abhishek Singh
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