A free trade agreement (FTA) between India and the UK was signed Thursday, and shares of companies in industries like textiles and leather, among others, finished higher because the pact will increase exports from labour-intensive industries like textiles and leather.
The morning trade saw higher trading for textile-related stocks, such as Pearl Global Industries (4.61%), Arvind Ltd (3.76%), Vardhman Textiles (3.19%), Trident Ltd (2.93%), Welspun Living (2.1%), and Alok Industries (1.08%).
Leather-related equities were trading in positive territory on the National Stock Exchange (NSE), with AKI India Ltd. up 5%, defying a sluggish trend in the overall equity market. Zenith Exports (0.38%), Mayur Uniquoters (1.65%), and Mirza International (2.97%) came next.
It is anticipated that trade between India and the UK will increase by US $ 34.53 billion a year due to the signing of this FTA. By 2030, the FTA between the UK and India seeks to double trade to US $ 120 billion. Both nations want to boost commerce by an additional US $ 40 billion by 2040.
Apparel and home textiles imported by the UK from India stood at US $ 1.4 billion in CY 2024, representing a 6.6% share of textiles imported by the UK.
