SP Apparels, Sangam India, KPR Mill, Welspun Living & other textile stocks rise up to 20%; here's why

Textile stocks rose up to 20% on Wednesday after the conclusion of India-UK FTA, which provides for zero import duty on textiles into the UK. 

Shares such as SP Apparels (20%), Sangam India (9%), Indo Count Industries (11%), KPR Mill (6.77%), (PDS 8.37%), Welspun Living (13.31%), Sportking India (5%), GokalDas Exports (13.43%), Pearl Global Industries (10%) and Banswara Syntex (5%) were among the top gainers  on BSE today. 

The import duty on textile by UK was earlier 9.6%. Under the India -UK FTA, the duty will be reduced to zero. 

One of the key advantages of the Free Trade Agreement (FTA) is the substantial reduction in tariffs, particularly the introduction of zero-duty access for a wide array of Indian exports to the UK. This change is anticipated to enhance India's manufacturing capabilities and export competitiveness, especially in sectors that rely heavily on labour.

Currently, tariffs on imported UK whisky and gin, which stand at 150%, will be cut by half to 75% right away and are set to decline further to 40% by the end of the tenth year of the agreement.

For automobile imports from the UK, which face duties exceeding 100%, these tariffs will be significantly reduced to 10% through a quota-based system.

Negotiations for the Free Trade Agreement (FTA) kicked off in January 2022 and have now reached a successful conclusion, amid the trade and tariff war initiated by former US President Donald Trump. On Tuesday, Prime Minister Narendra Modi and UK Prime Minister Keir Starmer jointly announced the achievement of a mutually beneficial India – UK Free Trade Agreement.