How has the US tariff hike impacted Indian textile stocks?

The US has increased the tariff on Indian textile exports from 25% to 50%, which is expected to put further pressure on the shares of major Indian textile companies like Gokaldas Exports, Pearl Global, and Indo Count Industries, as they derive a significant portion of their revenue from the US market.

Which countries are now paying lower tariffs compared to India for textile exports to the US?

Bangladesh, Vietnam, and Pakistan are now paying lower tariffs of 20%, 20%, and 19% respectively, compared to the 50% tariff imposed on Indian textile exports to the US.

Home / Business and Economy / India Textile Stocks Plunge as US Hikes Tariffs to 50%

India Textile Stocks Plunge as US Hikes Tariffs to 50%

Q: What is the potential impact of the widening tariff gap on India's textile industry?

The increased tariff could make Indian textile products less competitive in the global market, potentially impacting the industry's growth and employment in the country.

6 Aug

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Summary

US raises tariff on Indian textiles from 25% to 50%
Indian textile firms derive 50-70% revenue from US exports
Competing nations like Bangladesh, Vietnam, Pakistan pay lower tariffs

India Textile Stocks Plunge as US Hikes Tariffs to 50%

On August 7, 2025, the US President signed an executive order to increase the tariff rate on Indian textile exports from 25% to 50%. This move is set to have a significant impact on India's textile industry, which has been a major exporter to the US market.

The first 25% tariff came into effect immediately, while the additional 25% increase will be implemented 21 days from the signing of the executive order. This development has created a wider gulf between India and other competing nations within the textile market, such as Bangladesh, Vietnam, and Pakistan.

Bangladesh's tariff rate has recently been reduced to 20% from 35% earlier, while Pakistan will now pay a 19% tariff, down from 29%. Vietnam too has concluded a deal with the US, agreeing to a 20% tariff levy.

The increased tariff is expected to put further pressure on the shares of major Indian textile companies, many of whom derive a significant portion of their revenue from the US export market. Firms like Gokaldas Exports, Pearl Global, Indo Count Industries, KPR Mill, and Welspun Living, which get 50-70% of their revenue from the US, are likely to witness selling from investors.

This development comes as a blow to India's textile sector, which has been a key driver of the country's exports. The widening gap in tariff rates between India and its competitors could make Indian textile products less competitive in the global market, potentially impacting the industry's growth and employment.

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