Shares of Gokaldas Exports Ltd surged 8.22% to ₹921.55 in early trade on May 7, following the announcement of a landmark Free Trade Agreement (FTA) between India and the United Kingdom. The FTA will remove the 8–12% import duty on textiles and garments exported from India to the UK, making Indian products significantly more competitive against peers from Bangladesh, Vietnam, and China.
This development is seen as a major tailwind for textile exporters such as Gokaldas Exports, Arvind Ltd., and KPR Mill Ltd. All three companies are expected to benefit from enhanced access to the UK market, where Indian apparel exports currently lag behind those of Bangladesh and China.
Speaking to CNBC-TV18, S Ganapathi, Vice Chairman and MD of Gokaldas Exports, stated that the FTA helps bring India at par with Bangladesh on apparel tariffs, and provides a 12% edge over Chinese exports. He estimated a $1 billion incremental opportunity for Indian apparel in the UK, with Gokaldas’ UK revenue share potentially doubling by FY27 from the current 5%.
UK imports from India (2024):
- Apparel (knit or crocheted): $556.55 million
- Other textile articles & worn clothing: $263.34 million
- Yarn and woven fabric: $24.47 million
With a market cap of ₹65,540 crore, Gokaldas Exports is now positioned to gain momentum in global markets, driven by supportive trade policies and growing demand.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Please consult a financial advisor before making any investment decisions.
