Major textile counters rallied sharply in response: Gokaldas Exports jumped 6.63%, KPR Mill rose 6.45%, Welspun Living climbed 6.34%, Indo Count Industries gained 6.09%, Vardhman Textiles added 4.93% and Arvind was up 1.91%.
At the core of this investor enthusiasm is the scrapping of the 8–12% UK import duty on textiles and garments under the FTA—putting Indian exporters on par with Bangladesh and giving them a 12% tariff advantage over China. This is expected to enhance India's competitiveness in the UK market, a key destination for apparel and textile exports.
Analysts are optimistic, noting that the deal could help Indian firms double their revenue contributions from the UK by FY27.
Beyond apparel, the agreement is also expected to benefit auto components and chemical exports, with total Indian exports to the UK projected to rise significantly by 2027.
The India-UK FTA is the first major trade pact between the two nations and the bilateral trade is expected to reach $120 billion by 2030.
A standout feature of the pact is the "double contribution convention", which prevents Indian professionals in the UK from paying social security contributions in both countries. This move is being hailed as a "game-changer" for Indian workers, making overseas assignments more financially viable.