Last Updated:July 08, 2025, 11:55 IST
Shares of Indian textile companies including Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd zoomed up to 8.2% in intraday trade
The newly announced tariff, which takes effect from August 1, is a slight drop from the 37% rate that had been proposed earlier in April.
Shares of Indian textile companies including Gokaldas Exports, KPR Mill, Vardhman Textiles, and Arvind Ltd zoomed up to 8.2% in intraday trade on Tuesday, July 8, after the US administration, under President Donald Trump, announced a 35% tariff on Bangladesh, with specific implications for the apparel and textile sector.
The shares of Gokaldas Exports surged 8.2% on Tuesday, reaching a high of Rs 974.70, and leading the gains among textile stocks. Vardhman Textiles shares followed closely, rising 7.9% to touch Rs 537.70. KPR Mill shares climbed 4% to reach Rs 1,204.85 during the session, while the shares of Arvind Ltd gained 2.9%, hitting an intraday high of Rs 356.35.
US Tariff On Bangladesh May Boost India’s Textile Edge
The newly announced US tariff on Bangladeshi goods, set to take effect from August 1, has been slightly reduced to 35% from the 37% proposed in April. Despite the minor reduction, the rate remains significantly above the standard 10% baseline tariff and is expected to dent Bangladesh’s competitiveness in the global garment supply chain.
There is still scope for negotiations before the new tariff structure comes into force next month.
Last week, the US signed a trade deal with Vietnam, under which a 20% tariff will apply to direct Vietnamese exports, and a steep 40% duty will be imposed on transshipped goods—those routed through Vietnam to evade origin-based tariffs.
Currently, India faces a general 10% tariff on exports to the US. However, for textile products, due to varying classifications, the effective tariff can go up to 26%. In the ready-made garments segment, Vietnam leads with a 19% share of the US market, followed by Bangladesh at 9%, while India holds around 6%.
A US-India trade agreement is reportedly on the horizon, following the recent visit of an Indian delegation to Washington. If the deal results in reduced tariffs for Indian textile exports, it could enhance India’s competitiveness and help it gain market share from regional rivals.
However, if tariff rates remain unchanged in the final agreement, India may lose its relative edge against Vietnam.
Still, analysts remain optimistic. They believe that India’s textile exporters stand to benefit under the evolving trade landscape, especially if favourable terms are secured in the upcoming deal.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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