Trident, other textile stocks rally up to 6% on India-UK FTA
textile stocks
surged up to 6% on Friday morning after the
India-UK Free Trade Agreement
(FTA) eliminated tariffs that had previously placed domestic exporters at a disadvantage compared to regional competitors. Trident led the rally with a 6% jump, while SP Apparels, Redtape, and TCNS Clothing each gained around 2% as investors priced in the potential for exports to Britain to double over the next five to six years.
The agreement removes 10–12% duties that Indian textile and apparel exports previously faced in the UK market, instantly leveling the playing field with countries like Bangladesh, Pakistan, and Cambodia, which already enjoy duty-free access.
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While the UK's total textile imports stand at $26.95 billion, less than India's global textile exports of $36.71 billion, India currently exports only $1.79 billion worth to the UK, highlighting significant headroom for expansion in what is now India's third-largest textile export market.
'Among those most poised to benefit is India's textile and garment industry, which is projected to double exports to the UK over the next five to six years, driven by an anticipated 11% CAGR,' analysts said.
The textile sector accounts for 1,143 tariff lines under the zero-duty arrangement, representing 11.7% of the agreement's scope. India is expected to capture at least 5% additional market share in the UK within one to two years.
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'The
India-UK FTA
, which is India's first comprehensive trade agreement with a major developed country, has two implications from a market perspective,' said Dr. V.K. Vijayakumar, Chief Investment Strategist at
Geojit Financial Services
. 'One, it will significantly boost trade between the two countries, which the market will view positively. Two, along with other FTAs signed by India, it positions the country as a pro-trade economy.'
Vijayakumar added that sectors like textiles are now firmly on the market radar as key beneficiaries of the deal.
The agreement marks India's first major step outside its traditional trade negotiation comfort zone.
'This is a transformative economic partnership that will open up nearly 100% of trade between the two dynamic economies,' said Agneshwar Sen, Trade Policy Leader at EY India. 'It will eliminate tariffs on key Indian exports—from textiles and auto parts to seafood and jewellery—boosting MSMEs, job creation, and growth in labour-intensive sectors.'
The broader economic impact is expected to be substantial, with bilateral trade projected to double to $120 billion by 2030, up from the current $60 billion, according to Prashant Tandon, Executive Director at Waterfield Advisors. The deal is estimated to boost trade by $34 billion annually.
'In the current global landscape marked by tariff-related uncertainty, the India-UK FTA is a timely and strategic move that can significantly boost sectors where India is aggressively targeting export growth,' said Bipin Sapra, Partner at EY India.
For Indian textile manufacturers, the agreement comes at an opportune time—offering a clear competitive advantage in a major developed market amid ongoing global trade tensions.
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