Shares of Indian textile companies rallied on July 8, 2025, following the announcement of a 35% US tariff on Bangladesh's exports. This development is seen as a potential tailwind for India’s textile manufacturers like Gokaldas Exports, Vardhman Textiles, and KPR Mill, as they gain competitiveness in the global market, particularly in the US.
India’s textile sector saw strong growth in the stock market after the US government imposed a 35% duty on Bangladeshi exports. This shift is significant considering Bangladesh holds a 9% share in the US ready-made garment market, compared to India’s 6%. Stocks such as Gokaldas Exports rose 7.5% to ₹967.85, while Vardhman Textiles was up 7% at ₹533.10. Siyaram Silk Mills and Nahar Spinning Mills gained 4% each, and KPR Mill increased by 2% during early trading hours.
Currently, India faces a 10% base tariff on its textile exports to the US, while certain products attract rates up to 26%, limiting its price competitiveness. The steeper penalties on competitors such as Bangladesh and Vietnam, which now face 35% and 20% tariffs respectively, create room for Indian exports to gain traction. The US also imposed a 40% rate on transshipped goods, closing a gap some countries used to exploit lower tariffs indirectly.
Read More: Textile Stocks in Focus: Gokaldas Exports and KPR Mill in Spotlight After US and Vietnam Tariff Deal!
Negotiations for a bilateral trade agreement between India and the US are ongoing, with a deadline looming on August 1. A successful outcome with reduced tariffs could further boost India’s appeal as a textile exporter. With a current market share significantly below that of Vietnam (19%) and Bangladesh (9%), India has an opportunity to gain ground in the US textile market.
On July 8, 2025, Gokaldas Exports share price opened at ₹960.00 on NSE, above the previous close of ₹900.35. During the day, it surged to ₹975.00 and dipped to ₹940.15. The stock is trading at ₹956.00 as of 9:49 AM. The stock registered a significant gain of 6.18%.
On July 8, 2025, Vardhman Textiles share price opened at ₹508.00 on NSE, above the previous close of ₹498.70. During the day, it surged to ₹538.00 and dipped to ₹505.50. The stock is trading at ₹532.50 as of 9:49 AM. The stock registered a significant gain of 6.78%.
Over the past week, it has moved up by 6.95%, over the past month, it has moved up by 8.80%, and over the past 3 months, it has moved up by 19.50%.
On July 8, 2025, K.P.R. Mill share price opened at ₹1,182.00 on NSE, above the previous close of ₹1,158.30. During the day, it surged to ₹1,222.90 and dipped to ₹1,163.80. The stock is trading at ₹1,201.80 as of 9:49 AM. The stock registered a significant gain of 3.76%.
Over the past week, it has moved up by 8.33%, over the past month, it has moved up by 7.02%, and over the past 3 months, it has moved up by 29.69%.
The US tariff hike on Bangladesh provides an advantageous shift for Indian textile exporters. Stocks like Gokaldas Exports, Vardhman Textiles, and others have responded with notable gains, reflecting investor optimism. As negotiations with the US continue, further easing of tariffs could strengthen India’s position in the global textile trade.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 8, 2025, 10:03 AM IST
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