Indian Textile Companies See Gains as US Lowers Tariffs, Improving Competitiveness

Indian textile companies witnessed a sharp rally in early trade following the announcement of tariff cuts by the United States. The interim trade framework reduces textile tariffs to 18% from punitive levels of up to 50%, significantly improving India’s export competitiveness.

Export-oriented firms such as Gokaldas Exports, Welspun Living, and Indo Count Industries saw notable gains, reflecting renewed investor confidence in the sector’s growth prospects. Analysts believe the tariff relief could trigger a broader earnings recovery cycle for textile exporters.

Key Highlights

• Stock Performance: Textile stocks rose between 0.6% and 3.5% in early trade.
• Tariff Reduction: US tariffs on Indian textiles cut to 18% from up to 50%.
• Beneficiaries: Export-focused companies like Gokaldas Exports, Welspun Living, and Indo Count Industries.
• Investor Sentiment: Optimism around improved margins and global competitiveness.
• Sector Outlook: Analysts expect stronger export volumes and earnings recovery in FY2026.

Sources: Republic Business, Ticker, Textile Market News