Synopsis:
Textile stocks rallied after the U.S. imposed a 35% tariff on Bangladesh, improving India’s export competitiveness. With Vietnam and Bangladesh ahead in the U.S. market share, Indian players stand to gain as sourcing shifts.
India’s textile sector, valued at $225 billion in 2025, is a major economic driver, contributing 2.3% to GDP and employing over 45 million people. Textile exports are projected to reach $45 billion in 2025, reflecting a 7% growth. The industry benefits from rising domestic demand, policy support, and global supply chain shifts.
Today, Textile stocks surged after the U.S. imposed a 35% tariff on Bangladesh, making its exports costlier. This shift enhances the competitiveness of Indian textile manufacturers in global markets, especially the U.S. Buyers are likely to divert orders to India, boosting export demand, improving margins, and driving positive sentiment across the domestic textile sector.
In the U.S. ready-made garment market, Vietnam leads with a 19% share, followed by Bangladesh at 9% and India at 6%. Although the U.S. has slightly reduced the tariff on Bangladesh from 37% to 35%, it remains far above the 10% base rate. With implementation set for August 1, India stands to gain if buyers shift sourcing. On India, U.S. President Donald Trump said a trade deal is close as he announced tariffs for 14 other countries, most of them in Asia.
“…We are close to making a deal with India. We’ve made a deal with the United Kingdom. We’ve made a deal with China. We met with others, and we don’t think we’ll be able to make a deal, so we just sent them a letter. We’re sending out letters to various countries telling them how much tariffs they have to pay. Some will maybe adjust a little bit depending if they have a cause, we’re not going to be unfair about it…”
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Additionally, U.S. President Donald Trump has imposed 25% tariffs on imports from Japan and South Korea, while notifying 12 other nations of upcoming duties. Goods from Myanmar and Laos will face a steep 40% tariff, while Cambodia and Thailand will be taxed at 36%. This signals a broad trade shift that may benefit alternative exporters, such as India.
Here are the textile stocks on bullish movement after the U.S. imposed a 35% tariff on Bangladesh;
| Company Name | CMP | Increased % |
| Gokaldas Exports Ltd | 944.80 | 5 |
| Arvind Ltd | 349.90 | 1 |
| KPR Mill Ltd | 1,190.00 | 3 |
| Vardhman Textiles Ltd | 532.10 | 7 |
| Welspun Living Ltd | 146.76 | 2.39 |
| Alok Industries Ltd | 22.68 | 13 |
| Raymond Lifestyle Ltd | 1,338.00 | 6.83 |
Written by Abhishek Singh
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