This comes after US President Donald Trump said he loves India and both countries are working on a trade deal. The President had phoned Prime Minister Narendra Modi to wish Happy Diwali. The development gains significance as Donald Trump recently said that negotiations for a trade deal with India were underway. On Tuesday, Trump also said he had received assurance from Prime Minister Narendra Modi in a phone call that New Delhi would scale back purchases of Russian oil.
In the morning, Gokaldas Exports led the surge, rallying 13% to their day’s high of Rs 899 per share. K.P.R Mill gained 6.5% to its day high of Rs 1,090 per share on the NSE. Raymond Lifestyle shares surged to its day high of Rs 1,246, or 4.2% from the last close. Pearly Global rallied as much as 7% to an intra-day high of Rs 1,403. Indo Count also gained 7% to its day high of Rs 288 per share on the NSE. Welspun Living soared 8% to Rs 132 per share.
Other major triggers that could benefit the textile majors include the India-UK Free Trade Agreement (FTA). The deal is expected to aid textile exporters by removing the 10–12% 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% from 12%. Man-made fibres, yarns, handloom, handicrafts, and carpets will also face a lower uniform rate of 5%.
In a recent report, Crisil Ratings said India’s home textile makers could be staring at a 5-10% decline due to Trump tariffs. Companies that derive more than half of their revenue from the US are expected to feel a sharper impact. To counter this, exporters are eyeing the European Union and the UK, which together made up about 13% of India’s home textile exports last fiscal.Textile stocks have faced selling pressure ever since Trump imposed an additional 25% tariff on India. This is far steeper than the 20% levied on peers Bangladesh and Vietnam, undercutting the country’s edge in key categories such as apparel. Companies like KPR, Welspun and Indo Count derive 50–70% of their revenues from the US market.
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