India-US Trade Talks Lift Textile Stocks; Gokaldas, Vardhman, Welspun Share Price Jump Up to 9%

Textile shares in India rose sharply on Wednesday after optimism grew around a possible trade deal with the U.S. Gokaldas Exports gained 9.68%, Welspun Living rose 8.88%, Vardhman Textiles jumped 7.9%, Pearl Global climbed 6.2%, and KPR Mill added 3.29%.

Trump and Modi Signal Progress

The rally followed U.S. President Donald Trump’s statement that negotiations with India are continuing to resolve trade barriers. He expressed confidence that talks would succeed and mentioned he looks forward to speaking with Prime Minister Narendra Modi soon.

Tariff Tensions in the Background

The optimism comes after recent trade tensions, when the U.S. raised tariffs on Indian imports to 50%, hurting sectors like textiles. This caused volatility in stocks, but sentiment turned positive on hopes of an agreement.

India Targets New Export Markets

Union Minister Giriraj Singh also boosted market confidence by announcing that India aims to expand textile exports to 40 new countries, which together import nearly $600 billion worth of textiles annually. India also plans to leverage its free trade agreements with 15 countries to diversify export destinations.

The U.S. tariff hike, effective from August 27, is expected to impact more than $48 billion of Indian exports, making market diversification crucial.

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India’s Textile Industry at a Glance

In FY2024–25, India’s textile and apparel sector is valued at $179 billion, with $142 billion in domestic demand and $37 billion in exports. Globally, the textile import market stood at $800.77 billion in 2024, where India holds a 4.1% share, ranking sixth among exporters and supplying to over 220 countries.

Conclusion

The rally in textile stocks shows renewed investor optimism, driven by India-US trade talks and the government’s push to tap new export markets. If a deal is reached and diversification succeeds, India’s textile sector could strengthen its position globally despite tariff challenges.

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