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Corporate Update

Textile Stocks Soar Up To 17 % Amid India-US Trade Deal Optimism

• By  Textile Excellence
• November 04, 2025

Shares of major Indian textile companies surged today as market optimism grew over the potential finalisation of a trade agreement between India and the United States. Companies such as Kitex Garments, Vardhman Textiles, and KPR Mill experienced intraday jumps of up to 17 %.

Investors are anticipating that the deal could reduce current US import duties of approximately 50 % on Indian textiles to as low as 15 %‐16 %. India is a key textile exporter, with exports to the United States valued at around US$4.8 billion in 2024, representing about 6 % of the US apparel import market. September data showed Indian textile and apparel exports fell 10.3 % year-on-year, highlighting the sector’s sensitivity to trade policy shifts.

Market analysts point out that such tariff relief would enhance India’s competitiveness in the global supply chain, potentially shifting orders from rival countries to Indian manufacturers. The textile sector employs over 45 million workers in India and contributes approximately 2 % of national GDP. Notably, while optimism is high, actual benefits will depend on the final agreement’s terms, implementation speed, and how quickly exporters adapt to new opportunities.

Investors are anticipating that the deal could reduce current US import duties of approximately 50 % on Indian textiles to as low as 15 %‐16 %. India is a key textile exporter, with exports to the United States valued at around US$4.8 billion in 2024, representing about 6 % of the US apparel import market.