Textile Stocks Extend Rally After Interim India-U.S. Trade Deal

Shares of export-oriented textile companies extended their upward momentum following confirmation of the interim India-U.S. trade agreement. The revised framework lowers tariffs on Indian textile and apparel exports to 18%, improving India’s position against competing Asian exporters.

Gokaldas Exports led gains, rising as much as 5.6% to ₹826.25. Vardhman Textiles, Welspun Living and KPR Mills advanced around 3% each, while Trident traded nearly 2% higher at ₹28.21.

Over the past week, textile stocks have seen sharp re-rating. Gokaldas Exports has risen 42%, while Welspun Living, KPR Mills, Vardhman and Trident have gained up to 19%, reflecting sustained investor interest in export-driven plays.

Tariff Reset Improves Export Competitiveness

Under the interim agreement, the United States will apply a reciprocal tariff of 18% on Indian-origin goods, including textiles and apparel. This replaces the earlier tariff of 25%, according to the joint statement released by the White House.

The United States remains the largest export destination for Indian textiles. In the last financial year, India exported textiles worth $80.3 billion to the U.S, accounting for 9.6% of total exports to the country. As of November, exports stood at $5.1 billion.

Sector Outlook Strengthens

The Ministry of Textiles has said the revised tariff structure removes India’s earlier disadvantage relative to peers such as Bangladesh, China, Pakistan, and Vietnam and is likely to reshape global sourcing strategies in India’s favour.

Market participants expect improved price competitiveness to support higher order inflows, better capacity utilisation and operating leverage for exporters. Apparel manufacturers and home textile companies with established U.S. retail relationships are seen as key beneficiaries.

The ministry added that the agreement could be instrumental in supporting India’s $100 billion textile export target by 2030, with the U.S. expected to account for more than one-fifth of the total textile exports.