Textile Stocks Surge Up to 17% on Hopes of India–US Trade Optimism

Textile-sector stocks in India surged sharply on Thursday amid renewed hope of a trade breakthrough between India and the United States. Optimism mounted that the United States may soon drop tariff barriers on Indian textile exports, boosting firms in the segment.

Textile Stocks Soar
In intraday trading, leading textile exporters rallied strongly as expectations grew that duties on Indian goods could be cut from current levels of around 50% to about 15-16%. This potential cut is seen as a major tailwind for home-textiles, garments, yarn and other export-oriented units. Major listed names in the sector posted double-digit gains, with some stocks rising by up to 17%. Kitex Garments led the rally, with share price jumping over 15%. Apart from that the share prices of Vardhman Textiles, Trident, Gokaldas Exports, Indo Count Industries, Pearl Global, Welspun Living, and KPR Mill rose intraday. 

Why The Optimism
The optimism builds on media reports that India may agree to reduce its imports of Russian crude oil, while also opening up to greater access for non-GM American corn and soymeal. These developments could clear a path to resolving long-standing differences between the two countries on trade. For the textile sector, which had been under pressure following the steep US tariff rise and declining export volumes, this looks like a turning point. 
Within the market, several major exporters outperformed sharply. For example, shares of some of the largest textile firms climbed nearly 10% or more in early trading such as one with a ~9.5% rise, while several other players picked up between 2.8% and 7%. Meanwhile, other companies saw swings up to 17% as optimism about the trade deal took hold. 

What It Means For the Textile Sector
This surge reflects the hope that a favourable deal would restore India’s competitiveness in the US market at a time when global buyers are diversifying sourcing beyond Bangladesh and other countries. With both agriculture and energy now part of the negotiation agenda, the potential ripple benefits for textiles are being keenly watched by market participants.

Tariffs To Erase Pain For The Sector?
The incoming trade shift comes at a critical juncture: export data for September showed a decline in India’s textile and apparel outbound shipments, underscoring the sector's ongoing strain. If tariffs are eased and access improved, the sector could see a meaningful recovery in export demand and margins in the near to medium term.