KPR Mill, Gokaldas Exports Jump Up To 20% As India–US Trade Deal Lifts Textile Stocks

Shares of export-oriented textile companies such as KPR Mill, Gokaldas Exports and Welspun Living rallied as much as 20% on Tuesday after the India–US trade agreement cut tariffs on Indian goods to 18%, sharply improving the sector’s outlook.

US President Donald Trump announced the pact on social media after speaking with Prime Minister Narendra Modi, adding that India would pause Russian oil purchases and lower trade barriers for American exports.

Under the deal, tariffs on Indian exports to the US drop to 18% from earlier elevated levels, placing India at an advantage over competing apparel hubs like Vietnam and Bangladesh, which face 20% duties. India, in return, will move to reduce both tariff and non-tariff barriers on US goods.

Textile exporters

had been under pressure since the rollout of reciprocal tariffs and trade arrangements between the US and other nations, given their deep exposure to the American market. Many listed players derive 50–70% of their revenue from the US. Gokaldas Exports, Welspun Living and Indo Count get close to 70% of their sales from the region, while Pearl Global and KPR Mill earn about half their revenue there.

For Indian equities overall, the agreement removes a major uncertainty that had kept foreign investors on the sidelines and contributed to a period of underperformance. In January, the Nifty at one point slid more than 1,000 points, while foreign portfolio investors offloaded billions of dollars in shares. Trade-related worries, a softer rupee and global risk-off sentiment had weighed heavily on markets, with analysts saying any breakthrough on the trade front could spark a turnaround.

Responding to the development, Prime Minister Modi expressed appreciation for the announcement, saying closer cooperation between the two large democracies would open up significant opportunities for growth and partnership.

Coupled with the recently concluded free trade agreement with the European Union, the US deal marks a milestone, giving India trade arrangements with two of the world’s biggest economic blocs simultaneously for the first time.