Indian Textile Stocks Surge As EU Cuts Tariffs To Zero

Indian textile companies witnessed a sharp rise in stock prices following the European Union’s decision to eliminate tariffs on textile imports. The announcement is seen as a major breakthrough for India’s textile sector, which has long sought greater access to European markets. Analysts believe the tariff cut will significantly enhance India’s competitiveness, benefiting both large and mid-sized exporters.  

Key highlights

• Indian textile stocks rose between 1.3% and 7.4% in market trading.  
• EU announced zero tariffs on textile imports, boosting India’s export prospects.  
• Move expected to improve margins and profitability for Indian textile firms.  
• Major beneficiaries include leading exporters and mid-cap textile companies.  
• Industry analysts project stronger demand from European buyers in the coming quarters.  
• Policy shift aligns with EU’s broader trade liberalization strategy.  

The tariff reduction is expected to provide a long-term boost to India’s textile industry, which employs millions and contributes significantly to the country’s export earnings. With enhanced access to European markets, Indian firms are likely to expand production capacity and strengthen their global footprint.  

Sources: Reuters, Economic Times, Business Standard