India-US Trade Deal: Gokaldas Exports, Welspun Living, other textile shares in focus

Indian textile stocks, Gokaldas Exports Ltd., Welspun Living Ltd., KPR Mill Ltd., Indo Count Industries Ltd., among others, which were the worst hit due to US President Donald Trump imposing a 50% tariff on Indian exports will be in focus on Tuesday, February 3, after India and the US agreed to a trade deal late Monday night, announced by Trump and Prime Minister Modi on their respective social media platforms.

As per the deal, Indian exports will now have a 18% tariff to the US, which is lower than other garment exporting hubs, Vietnam and Bangladesh, both of which are taxed as 20% each.

Textile stocks were the worst hit since the reciprocal tariff announcement and deals being done with other countries, as they have a significant exposure to the US market. Most of the companies derived anywhere between 50% to 70% of their overall topline from the US market.

Stock	% Of Revenue From US
Gokaldas Exports	70
Welspun Living	65
Indo Count Industries	70
Pearl Global	50
Arvind	30
KPR Mill	21

According to analysts, Bangladesh had a 9% market share in the US readymade garment imports, while Vietnam has a 19% share. India only had a 6% market share, which could now increase considering the lower tariffs.

In an interaction with CNBC-TV18 on January 27, Gokaldas Exports' Vice Chairman & Managing Director Sivaramakrishnan Ganapathi said that the US orderbook pipeline is strong till the first quarter of financial year 2027 and that there are orders coming in for the second quarter as well.

While there has been no impact on the company's orderbook, the tariffs have resulted in the US export margins crimping down to single digits even as the impact of tariffs is being shared with the clients.

Shares of Gokaldas Exports are down 17% in the last one month, while those of Welspun Living are down 6%. Shares of Indo Count Industries have also declined 14% over the same timeframe.