Textile stocks surge up to 8% as India-US interim trade framework lifts sentiment

Shares of major textile companies such as Gokaldas Exports, Raymond and Welspun rallied up to 8% on Monday as India and the US agreed on the framework of an interim free trade deal, lowering US duties to 18% on most Indian goods.

The interim trade agreement framework, announced on February 7, has also resulted in the revocation of the punitive 25% import duties levied by the US on Indian goods for buying Russian oil. Import duties on textiles and other goods will be reduced to 18% from 50% by the US as the two countries implement the framework.

Following the India-US interim trade deal, Gokaldas Exports shares soared around 8.5% to hit a high of ₹847.95 apiece on the BSE in early trade on Monday. The stock later traded 5.47% higher at ₹823.55 at 11:45 am.

Welspun Living shares rose over 3.6% to trade at ₹145.4 apiece on the BSE. Arvind Ltd shares jumped 5.2% to ₹387.55 apiece, KPR Mill Ltd advanced by nearly 2% to ₹996.3 and Indo Count Industries Ltd gained over 1% to ₹306.

Garware Technical Fibres (5%), Raymond Lifestyle (3.5%), Bombay Dyeing (4.84%) and Filatex India (8%) also advanced.

Also Read: Exclusive | US tariff cuts: Piyush Goyal says 50% exports get zero duty, MSMEs gain

Pearl Global Industries, which has significant exposure to the US market, however, dropped 2.64% to ₹1786.2 per share on the BSE.

Company	US Exposure	Share Price Movement
Gokaldas Exports	70%	₹823.55 (+5.47%)
Welspun Living	65%	₹145.4 (+3.6%)
Arvind Ltd	30%	₹387.55 (+5.2%)
Indo Count Industries	70%	₹306 (+1%)
KPR Mill	21%	₹996.3 (+2%)

[Share price at 11:45 am/BSE]

In terms of exports to the US, Gokaldas Exports has 70% market exposure. Similarly, Welspun Living has 65%, Indo Count Industries has 70% and Pearl Global has 50% market exposure.

Import duties lower to 18% on Indian textile products

According to the interim pact between India and the US for the first phase of the free trade agreement, Indian textile products will attract reciprocal tariffs of 18%.

This is lower than tariffs imposed on close competitors like China (30%), Bangladesh (20%), Pakistan (19%) and Vietnam (20%), according to the Textiles Ministry.

Also Read: H-1B not part of US trade talks, but Indian tech firms unfazed by restrictions, says Piyush Goyal

India’s textiles sector accounts for the fourth largest exported goods to the US after electronics, diamond and jewellery and pharmaceutical products. Textiles accounted for around 9.6% of total exports to the US in FY25 with a total value of $8.3 billion.

Textile exports stood at $5.1 billion in FY26 (till November 2025), accounting for 8.6% of the total exports.