Shares of textile companies jumped up to 7 per cent on Wednesday after US President Donald Trump said on Truth Social that negotiations for a trade deal with India remain ongoing
By 10 am, shares of Gokaldas Exports and Welspun Living surged 7 per cent to their day’s highs of Rs 820 and Rs 127, respectively, while Pearl Global rose 7 per cent to Rs 1,365. Kitex Garments, with nearly 70 per cent of sales from the US, hit a 5 per cent upper circuit at Rs 195.63. KPR Mill gained 3 per cent to Rs 1,029, Raymond Lifestyle touched Rs 1,338, and Trident advanced 6 per cent to Rs 30.
Trump said the two nations continue to address trade barriers and voiced confidence in reaching a successful agreement. Prime Minister Narendra Modi also echoed the same optimism on X (formerly Twitter), saying ‘I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership.
Other major triggers that could be beneficial for the textile majors include the India-UK Free Trade Agreement (FTA). The deal is expected to aid textile exporters by removing the 10–12 per cent duty that had previously hurt them against competitors. The deal now gives India parity with Cambodia, Pakistan, and Bangladesh, which already enjoy duty-free access.
In addition, the new GST rate on readymade garments priced up to Rs 2,500 has been reduced to 5 per cent from 12 per cent . Man-made fibres, yarns, handloom, handicrafts, and carpets will also face a lower uniform rate of 5 per cent .
Textile stocks have faced selling pressure ever since Trump imposed an additional 25 per cent tariff on India, raising duties on Indian exports to nearly 50 per cent . This is far steeper than the 20 per cent levied on peers Bangladesh and Vietnam, undercutting the country’s edge in key categories such as apparel.
