UK and EU FTAs could lift India’s apparel export share, benefiting Gokaldas, Arvind
Motilal Oswal expects lower US tariffs and duty-free access under India’s UK FTA, alongside a potential EU pact in 2027, to strengthen Indian apparel exporters. Gokaldas Exports, Arvind and Pearl Global could gain as larger suppliers consolidate orders, despite Bangladesh’s labour-cost advantage.
What happened
Motilal Oswal says lower US tariffs and UK/EU FTAs could improve Indian textile exporters’ competitiveness. Larger suppliers including Gokaldas Exports, Arvind
Key facts
- US tariffs reduced to 10% from 50%
- Bangladesh labour costs are 35-40% lower than India
- India-UK FTA removes UK import duties of 8-12% on Indian apparel
- India's UK textile market share could rise from 6% to low double digits
- India-EU FTA could remove 10-12% EU import duty in 2027
- Five Indian exporters have revenue above $350 million
- Textile exporters projected to grow revenue in the mid-teens during FY26-FY28
Why this matters
Indian exporters with broad capacity and compliance capabilities may become attractive partners or acquisition targets for global brands and retailers seeking to consolidate India-led sourcing.