Shares of Indian textile exporters jumped in early trade on Tuesday after the United States announced 35 per cent tariffs on garment imports from Bangladesh, boosting expectations of increased competitiveness for locally manufactured textile products in global markets.
As of 9:25 a.m., shares of Gokaldas Exports rose 7.8 per cent to Rs 970, while Vardhman Textiles gained 7.4 per cent to Rs 535.75. KPR Mill traded 2 per cent higher at Rs 1,181.30, and Welspun Living was up 2 per cent at Rs 145.65. Other textile counters, including Alok Industries and Raymond, also saw solid buying interest.
Tariff Move Seen as Boost for Indian Exporters
The steep tariff on Bangladesh—though marginally reduced from the 37 per cent floated in April—is significantly higher than the previous 10 per cent base rate and is expected to take effect from August 1. The move is widely seen as a positive trigger for Indian exporters, particularly in the readymade garment (RMG) segment.
— In the US garment import market:
— Vietnam holds a 19 per cent share
— Bangladesh has a 9 per cent share
— India follows with 6 per cent
With US buyers likely to diversify away from higher-cost sourcing countries, Indian exporters could see an uptick in orders, helped by their cost-efficiency and production scale.
Trump Mentions India Trade Deal
The tariff hike comes as part of a broader trade realignment by former US President Donald Trump, who announced increased tariffs on 14 countries. While Bangladesh faces 35 per cent tariffs, Myanmar and Laos were hit with 40 per cent, and Cambodia and Thailand with 36 per cent.
India, however, was not on the list. In a post on Truth Social, Trump said: “We are close to making a deal with India… Some [countries] will maybe adjust a little bit depending if they have a cause. We’re not going to be unfair about it.” The statement sparked optimism that Indian textile exports will avoid fresh tariffs, further improving their relative advantage in the US market.
Outlook: Short-Term Tailwinds for Indian Textiles
Market participants believe Indian exporters—especially those with strong ties to US retailers—stand to benefit in the near term. Companies like Gokaldas Exports, KPR Mill, and Vardhman Textiles could gain market share as international brands look to shift sourcing away from tariff-hit regions.
Analysts expect this tariff shift to drive higher export inquiries, margin expansion, and earnings visibility for Indian textile firms over the next few quarters.
