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FTA with UK, Oman and New Zealand provides apparel export opportunity of ~USD20bn+

ICICIdirect Research 26 Dec 2025 DISCLAIMER

India has signed free trade agreements with three key trading partners UK, Oman and UAE. These three countries together provide textile export opportunity of ~USD20bn+ in the coming years (1/4th of US’ apparel export opportunity).
India’s export share in UK, Oman and UAE stands at 3-5%, which it can improve in the coming years.
India is also on fast track to sign a trade deal with EU27, which will provide a textile export opportunity of USD197bn (India’s share is 2.3%)
This will provide the scope of diversification for the Indian textile industry by lowering its dependence of export to single largest country (such as US) in the coming years.
On the business front, Textile companies will be posting of the weakest performance in Q3FY26 with EBIDTA margins expected to hit the bottom during the quarter. If India manages to sign the trade deal with US, we should expect uplift in performance from Q4FY26.
We continue to like textile companies such as KPR Mill, Gokaldas Exports and Indo Count Industries who are focusing on diversifying its production and client base in the coming years.

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