Vardhman Textiles, Raymond, Arvind Shares Surge After India Temporarily Waives Cotton Import Duty
- 19th August 2025
- 01:00:00 PM
- 3 min read
Mumbai | August 19 – India’s leading textile companies saw a sharp rally on Tuesday after the government announced a temporary suspension of cotton import duties, effective August 19 to September 30, 2025. The 42-day waiver aims to ease cost pressures for manufacturers amid rising U.S. tariffs on Indian textile exports.
The Finance Ministry confirmed the removal of the 11% basic customs duty and Agriculture Infrastructure & Development Cess (AIDC) on raw cotton imports. This short-term relief is designed to help textile companies manage input costs and maintain export competitiveness, especially as the U.S. imposes 50% tariffs on Indian textile exports, including an initial 25% duty and an additional 25% starting August 27, 2025.
Textile Stocks Rally Across the Board
Following the announcement, shares of major textile companies jumped as of 12:00 pm:
- Vardhman Textiles:+9.33%, intraday high ₹447.50
- Raymond Lifestyle:+7%
- Welspun Living:+6%
- Kitex Garments:+5%
- Indo Count Industries:+3.65%
- Gokaldas Exports:+2.5%
- Arvind Ltd.:+2%
- Alok Industries:+2.11%
The broader market also reacted positively, with Nifty 50 up 0.17% to 24,918.75 and BSE Sensex rising 0.23% to 81,457.13, reflecting investor confidence in the textile sector.
Impact of U.S. Tariffs
Trade tensions with the United States have placed additional pressure on India’s textile industry. President Donald Trump criticized Indian import levies as “very unfair and strong,” highlighting the need to address the U.S. trade deficit with India. At the same time, Trump acknowledged Prime Minister Narendra Modi as a “great friend,” signaling continued diplomatic engagement.
PM Modi stressed India’s commitment to protecting domestic industries and exporters, ensuring that farmer and manufacturer interests are not compromised. He also highlighted India’s push toward self-reliance in manufacturing sectors, including textiles, fertilizers, and EV batteries.
The Confederation of Indian Textile Industry (CITI) welcomed the temporary duty waiver, noting it would align domestic cotton costs with international prices and help exporters remain competitive. Manufacturers now have the 42-day window to procure raw materials at lower costs, stabilize operations, and plan shipments efficiently amid ongoing U.S. tariff pressures.
Why Investors Are Watching
The duty waiver triggered an immediate positive response in the stock market. Leading textile companies such as Vardhman Textiles, Raymond Lifestyle, and Arvind Ltd. led the rally, reflecting optimism that government support provides short-term stability. Investors are closely monitoring the impact of U.S. tariffs and the temporary relief, which offers a critical buffer for exporters during a challenging trade period.
Conclusion
The temporary cotton import duty waiver has sparked a bullish trend in textile shares, benefiting companies including Vardhman Textiles, Raymond Lifestyle, Arvind Ltd., and Welspun Living. While short-term, this relief measure strengthens market sentiment, allows exporters to navigate rising costs, and underscores the government’s commitment to protecting India’s export-oriented textile sector.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
