Textile Stocks Tumble: Gokaldas Exports, Arvind and Others Fall Up to 6% After RoDTEP Incentive Slashed by 50%

The Directorate General of Foreign Trade announced on February 24, 2026 that the Remission of Duties and Taxes on Exported Products (RoDTEP) rates will be limited to 50% of the existing levels, prompting an immediate reaction in the textile sector. 

Immediate Market Reaction to RoDTEP Rate Cut 

At 10 am on February 24, 2026 shares of Vardhman Textile, Arvind and Gokaldas Exports were trading 6.2%, 5.8% and 5.5% lower respectively. Other listed exporters such as Indo Count Industries, Welspun Living and Kitex Garments recorded declines between 2.5% and 3.1%. 

Details of the RoDTEP Revision 

The RoDTEP scheme, launched in 2021, provides refunds on taxes, duties and levies incurred during manufacturing and distribution of exported goods. Refund rates previously ranged from 0.3% to 3.9% of export value. The new notification restricts both the rates and the value caps to 50% of the notified amounts, effectively halving the benefit for exporters. 

Read More: Textile Stocks Jump as US Cuts Tariff to 15%; Trident Surges 7.6%, Welspun Gains 4%! 

Export Context and Industry Feedback 

India’s total exports rose modestly by 0.61% to $36.56 billion in January 2026, while the trade deficit widened to $34.68 billion, a three‑month high. The Federation of Indian Export Organisations highlighted that the reduction comes at a time of slowing global demand, heightened uncertainty and rising protectionism, and urged the government to reconsider the decision. 

Impact on Investor Sentiment 

The abrupt cut in RoDTEP incentives contributed to a sector‑wide sell‑off, with the affected stocks collectively losing up to 6% within hours of the announcement. The move underscores the sensitivity of export‑linked companies to policy changes affecting cost structures. 

Conclusion 

The 50% reduction in RoDTEP benefits announced on February 24, 2026 led to a noticeable decline in major textile exporters, with share prices falling between 2.5% and 6.2% across the sector. 

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