Gokaldas Exports, KPR Mill, other textile stocks rally up to 19% on optimism of zero-tariff access to UK market

Synopsis

Gokaldas Exports led the rally, jumping 18.8% to ₹1,013 connected the BSE. KPR Mill roseate 10.1% to ₹1,122.05, and Arvind Ltd gained 5.8% to ₹387. The rally was fueled by optimism that zero-duty entree to the UK marketplace volition boost Indian textile exports and heighten competitiveness against countries similar Bangladesh and Vietnam.

Shares of Indian textile exporters surged up to 19% connected Wednesday aft India and the United Kingdom concluded negotiations for a landmark escaped commercialized statement (FTA) that eliminates import duties connected textiles and garments.

Gokaldas Exports led the rally, climbing arsenic overmuch arsenic 18.8% to Rs 1,013 connected the BSE. Shares of KPR Mill roseate 10.1% to Rs 1,122.05, portion Arvind Ltd gained 5.8% to Rs 387. The rally was driven by optimism that zero-duty entree to the UK market volition boost Indian textile exports and amended competitiveness against countries similar Bangladesh and Vietnam.

The statement betwixt the 2 countries, clinched connected Tuesday, is expected to heighten Indian exports by eliminating the existing 8–12% import work connected textiles and garments successful the UK. The determination comes aft astir 3 years of stop-start negotiations and is considered 1 of India’s astir broad commercialized deals to date.

Zero tariff boost for Indian exporters

Under the FTA, 99% of Indian exports volition bask duty-free entree to the UK, covering astir the full commercialized worth betwixt the 2 countries. For the textile sector, the removal of tariffs is peculiarly significant, providing a level playing tract with cardinal rivals successful Asia and reducing the outgo of Indian products successful the British market.

The woody is projected to boost bilateral commercialized to implicit $100 cardinal by 2030 from the existent $60 billion, with India’s textile, footwear, leather, marine products, and artifact exports among the cardinal beneficiaries.

Broader implications of the FTA

The India-UK pact besides includes provisions for reduced tariffs connected UK exports, enhanced entree to services markets, and easier question of professionals. India volition trim import duties connected 90% of tariff lines, with 85% becoming afloat tariff-free wrong 10 years.

The statement is expected to lend $6.4 cardinal annually to the UK system by 2040. British Prime Minister Keir Starmer called it a "new epoch for trade," portion Indian Prime Minister Narendra Modi hailed it arsenic "ambitious and mutually beneficial."

The deal, which inactive requires ineligible checks and ratification, is being seen arsenic a imaginable exemplary for India’s ongoing commercialized negotiations with the European Union, Australia, and New Zealand.

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