Sivaramakrishnan Ganapathi, Vice Chairman & MD of Gokaldas Exports, said the India-UK Free Trade Agreement (FTA) opens up a major growth opportunity for India’s apparel exports. With the removal of tariffs, India can now compete on equal terms with countries like Bangladesh and even gain an edge over China.
“I see this as almost a billion-dollar opportunity for India,” he said, referring specifically to incremental gains in the apparel segment.
Currently, Gokaldas Exports earns about ₹250 crore annually from the UK, which is roughly 5% of its revenue. Ganapathi expects this contribution to rise sharply, stating, “We can double because it’s off a small base.”
The FTA brings India at par with Bangladesh on tariffs and offers a 12% cost advantage over China, which is expected to make Indian apparel more competitive in the UK market.
Ganapathi explained that Bangladesh’s earlier edge came from duty-free access, but with India now matching that, more orders could shift to Indian suppliers. Additionally, China’s $1 billion worth of cotton garment exports to the UK presents an opportunity for India, which now enjoys a cost edge in that space.
To capitalise on this expected demand, Gokaldas Exports is expanding capacity with three new factories under development. Ganapathi believes larger players with capacity will benefit most from this tailwind.
While the FTA is expected to improve profitability through tariff savings, he cautioned that “it all gets competed away at some point.” The company expects the real impact of the FTA to be felt from the second half of FY26, as ratification and customs implementation are completed.
On the other hand, Ganapathi flagged challenges in the US market, which still contributes over 80% of the company’s revenue. Due to tariff uncertainties and fears of an economic slowdown, brands delay orders and request temporary discounts. “There is a dialogue going on across the supply chain for some discounts for a 90-day period,” he said, adding that many customers are holding back until there is clarity.
The market capitalisation of Gokaldas Exports is around ₹6,803.61 crore. Its shares have gained close to 15% in the past year.
