Textile stocks in focus: While the Indian stock market continued to trade in a narrow range on Tuesday, July 8, amid uncertainty over the India–US trade deal and the resurfacing of global trade tensions, textile stocks managed to attract attention, with most of them trading higher.
Alok Industries, one of the leading textile manufacturers, saw its share price soar 15.30% to hit a 7-month high of ₹23.20, as optimism around the sector improved on expectations that the latest tariffs on Bangladesh could create opportunities for India to expand its textile exports to Western countries.
On Monday, Trump released the first in a series of tariff warning letters, just two days before agreements are due on countries facing his April 2 so-called reciprocal levies. The new rates include 25% duties on goods from Japan, South Korea, and Malaysia; 32% on Indonesia; 35% on Bangladesh; 36% on Thailand and Cambodia; and 40% on Laos and Myanmar.
While the 35% tariffs on Bangladesh—whose economy is heavily dependent on textile manufacturing—are lower than the 36% that Trump announced earlier in April, experts suggest that even 35% tariffs on the neighboring country may influence American buyers to turn to India, which is currently well-positioned from domestic policy tailwinds.
Meanwhile, the long trade talks between India and the US are expected to finalize anytime soon, which could potentially benefit some of the export-sensitive sectors, including textiles.
Earlier, in May, India and the United Kingdom signed a landmark Free Trade Agreement (FTA), which aims to increase bilateral trade by £25.5 billion ($34 billion) by 2040 through liberal market access and eased trade restrictions, with the textile sector seeing benefits from this pact.
India is ranked among the top textile-exporting countries globally, with a share of approximately 4% of global textiles and apparel exports. The major export destinations for India in this segment are the United States (US), the European Union (EU), and the United Kingdom (UK), accounting for around 53% of total textile and apparel exports in FY 2023–24.
The Indian government has been increasing its focus on the textile sector, offering incentives and reforms to strengthen domestic manufacturing. In the Union Budget 2025–2026, the Indian government announced a five-year mission aimed at enhancing the productivity and sustainability of cotton farming.
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