Vardhman, Welspun, Gokaldas, Arvind Shares Rally Upto 10% On Hopes Of Lower US Tariffs

• A trade truce buzz fuels rally in textile stocks. Reports suggest tariffs on Indian goods could be reduced to 15% - 16%
• The textile sector contributes around 12% to India’s total exports
• Welspun, Vardhman Textiles and Gokaldas Exports shares were up over 6%

Shares of Indian textile companies surged on Thursday on reports of India and the U.S. breaking the deadlock over a long-awaited trade deal. If successful, the tariffs on Indian goods could be reduced to 15% - 16% from the current 50%.

At the time of writing, shares of Welspun Living (+6.1%), Vardhman Textiles (+9.6%), Arvind (+6.6%), Nitin Spinners (+3.7%), Kitex Garments (13%), and Gokaldas Exports (+7.4%) were trading in the green.

U.S. President Donald Trump said he spoke with Prime Minister Narendra Modi on Tuesday, focusing mainly on trade and energy. Trump said that Modi assured him India would curb oil purchases from Russia. Modi confirmed the conversation via a post on X, thanking Trump for his Diwali greetings and emphasizing the shared values of democracy and unity against terrorism.

As part of the proposed deal, India may permit higher imports of non-genetically modified U.S. corn and soymeal. The agreement could also include a framework for periodically reviewing tariffs and market access.

Tariff Impact

The textile sector, one of the hardest hit by the tariffs, relies heavily on the US market, which accounts for 50-70% of revenues for several firms. In 2024, India exported $10 billion worth of textiles and apparel to the US.

The potential easing of tariffs would provide significant relief to the sector, which contributes around 12% to India’s total exports and directly employs over 45 million people. It would also allow India to compete against regional peers like Bangladesh (20%), Vietnam (20%), and Cambodia and Indonesia (both 19%), which faced significantly lower duties.

Despite the recent headwinds, India set an ambitious target of $100 billion in textile exports by 2030.

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