Textile companies share price movement
What’s driving textile stocks?
As per the British High commissioner, the India-UK FTA will come into force from July 15, 2026. The deal has been cleared to come into force after some final trade deals were finalised between both sides. With the FTA coming into force, it provides duty-free access for 99 per cent of Indian exports to the UK.
India’s apparel exports to the UK stands at $1.4 billion while home textile exports to the UK is relatively lower at $0.3 billion. India’s share in UK overall apparel imports ($19.84 billion) stands at 7.1 per cent while its share in UK’s home textile imports ($2.6 billion) stands at 10.5 per cent.
India currently pays 12 per cent tariffs on textile exports to both the UK and EU, which will reduce to ‘NIL’ upon implementation of the FTAs. This will place India on par with Bangladesh and Vietnam, while providing a competitive advantage over other major exporters.
According to analysts at ICICI Securities, India’s low labour costs, abundant cotton availability, and recent removal of customs duty on cotton imports further strengthen its cost competitiveness.
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Accordingly, benefits from the UK FTA are likely to start accruing from FY27, while the impact of the EU FTA should be visible from FY28. Additionally, a potential trade deal with the US involving lower tariffs could further accelerate order inflows, revenue growth and margin expansion.
Under ICICI Securities coverage, companies such as Gokaldas Exports (Europe exposure: 6 per cent), KPR Mill (Europe exposure: 58 per cent), Indo Count Industries and Pearl Global Industries (UK exposure: 4–5 per cent) stand to benefit over the medium to long term.
The textiles and apparel sector remains one of India’s most important export industries and continues to possess a Revealed Comparative Advantage (RCA) above one, indicating that India remains structurally specialized in textile exports relative to the global average.
The recent trade agreements with the UK, EU, UAE, Australia and New Zealand undoubtedly improve market access for Indian textile exporters and help narrow the tariff advantages historically enjoyed by competitors such as Bangladesh and Vietnam. However, the negative FTA Opportunity Score and the adverse Monte Carlo outcomes suggest that preferential market access alone is unlikely to generate a meaningful improvement in the sector’s export trajectory. While the UK and EU agreements may provide some support through lower tariffs and improved market access, the sector continues to face deeper competitiveness challenges, Yes Securities said in recent report.
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