India US Trade Pact- Textile Stocks Jump as Modi–Trump Call Rekindles India–US Trade Deal Hopes

Mumbai | October 10

Export-Focused Textile Stocks Rally on Trade Optimism

Shares of leading textile manufacturers surged as investors priced in the potential benefits of tariff relief. Kitex Garments jumped nearly 11% to ₹199 per share, while Gokaldas Exports and Indo Count Industries advanced about 9% each. Pearl Global Industries rose around 3%, and Raymond Lifestyle gained roughly 1% on the BSE.

The rally followed months of subdued activity in the sector, as exporters struggled with weak global demand and higher US import tariffs. A trade breakthrough between New Delhi and Washington could restore pricing power and export momentum for Indian textile players, who remain heavily dependent on the US market.

PM Modi’s Tweet Signals Policy Progress

Prime Minister Modi took to X (formerly Twitter) to share an update on the discussion with President Trump, signalling renewed diplomatic momentum between the two nations.

“Spoke to my friend, President Trump, and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks.”

The brief statement sparked a rally in export-linked stocks as traders interpreted it as a signal that formal trade talks were back on track after several months of quiet diplomacy.

Why It Matters for India’s Textile Industry

The US is India’s single largest market for textiles, accounting for nearly 30% of total exports. Earlier this year, the Trump administration imposed 50% tariffs on select Indian imports, including key textile categories — a move that sharply reduced India’s price competitiveness versus Bangladesh and Vietnam, which continue to enjoy preferential access.

The steep duties hit India’s export margins and caused order volumes to dip through FY25. A fresh trade arrangement — even a limited one — could narrow the tariff gap and reopen growth opportunities in categories such as apparel, home furnishings, and technical textiles.

Investor Outlook: Cautious Optimism, Real Potential

Thursday’s rally underscores how sensitive the textile sector remains to trade policy signals. For now, optimism is being driven more by expectation than by confirmed policy change. But investors are clearly betting that India–US trade relations could enter a more constructive phase in the coming months.

Export-oriented names such as Kitex Garments, Indo Count, and Gokaldas Exports are well positioned to benefit from any tariff relief, particularly with festive and holiday demand improving globally. While short-term volatility is likely, a formal deal could provide a sustained re-rating opportunity for the sector in FY26.

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