India–UK FTA Sparks Rally in Textile Stocks; Welspun Living, Indo Count Surge Up to 20%

18 Jun 2026 , 03:46 PM

Textile and apparel stocks witnessed a strong rally in afternoon trade as investor sentiment turned upbeat following the announcement that the India–UK Comprehensive Economic and Trade Agreement (CETA) will come into force on July 15.

The agreement is expected to significantly improve export competitiveness by eliminating tariffs and expanding duty-free access for Indian goods in the United Kingdom.

Textile Stocks Lead Market Gains

A sharp uptrend was seen across major textile exporters:

• Welspun Living surged 10% to ₹161.34
• KPR Mill jumped 14% to ₹1,188.99
• Vardhman Textiles rose 6.03% to ₹663.90
• Trident Limited gained 4% to ₹25.79
• Indo Count Industries surged 20% to ₹410.50
• Alok Industries climbed 2.33% to ₹13.20

The strong rally highlights renewed investor interest in export-oriented textile companies.

India–UK FTA: A Major Export Catalyst

The India–UK CETA marks a key milestone in India’s global trade strategy, providing zero-duty access for a wide range of exports.

Key sectors benefiting include:

• Textiles & apparel
• Electronics
• Chemicals & pharmaceuticals
• Gems & jewellery
• Engineering goods
• Auto components
• Leather & footwear
• Marine and processed food products
• Toys

The agreement is expected to cover nearly 99% of tariff lines, accounting for almost 100% of India’s export value to the UK over time.

Why Textile Stocks Are Rallying

The textile sector is one of the biggest beneficiaries of the deal due to:

• Elimination of UK tariffs of up to 12% on textile imports
• Improved pricing competitiveness for Indian exporters
• Higher demand from UK buyers
• Expansion opportunities for labour-intensive industries

Export-focused companies are expected to benefit the most, especially in garments, home furnishings, and bedding products.

Sector-Wide Impact

The agreement is likely to boost India’s export ecosystem across multiple industries:

• Increased global market access
• Stronger margins for exporters
• Diversification of export destinations beyond traditional markets
• Long-term structural growth for manufacturing hubs

Market Outlook

Investor sentiment remains positive for textile and export-oriented companies, with expectations of:

• Sustained demand growth from the UK
• Improved order books for FY26
• Strong earnings visibility for leading exporters

 

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