UK, EU trade deals could open a $220bn apparel market for Indian exporters
Jefferies says UK tariff cuts from July 2026 and a potential EU agreement could narrow India’s 10-12% tariff disadvantage, benefiting suppliers including Gokaldas Exports, KPR Mills, Pearl Global and Raymond Lifestyle.
What happened
Gokaldas Exports · Jefferies says UK tariff cuts and a potential EU deal could give Indian apparel exporters access to a $220 billion import market at
Key facts
- Current EU tariff disadvantage: 10-12%
- Combined UK and EU textile-apparel import market: approximately $220 billion
- Gokaldas Exports revenue: about Rs 4,000 crore
- Gokaldas capacity: about 87 million garments
- KPR Mills garmenting capacity: about 204 million pieces
What changed
Jefferies says UK tariff cuts and a potential EU deal could give Indian apparel exporters access to a $220 billion import market at near-parity with Bangladesh, Pakistan and Turkey, benefiting Gokaldas, KPR Mills, Pearl Global and Raymond Lifestyle.
Why this matters
Indian apparel exporters should prepare capacity, compliance and customer-acquisition plans for potential UK tariff cuts from July 2026 and an eventual EU deal that could materially improve price competitiveness.
What to watch
- Publication of the final UK-India tariff schedule and effective date confirmation.
- Rules-of-origin provisions that determine whether garments made with non-Indian inputs qualify for preferential treatment.
- Formal progress, political approval or signing timeline for an India-EU free-trade agreement.
- Quarterly UK/EU order growth, new-client wins and capacity-utilization disclosures from listed apparel exporters.
- Evidence of buyer price resets versus stable FOB prices after tariff removal.