The Finance Ministry issued a notification through the Central Board of Indirect Taxes and Customs, removing both the basic customs duty and the Agriculture Infrastructure and Development Cess on imports. This move provides temporary relief to the textile and garment industry amid concerns over the Trump tariffs.
Specifically, an 11% import duty on raw cotton has been temporarily lifted, effective from August 19 until September 30. This offers temporary relief to the textile and garment industry, which has been facing challenges amid concerns related to the Trump tariffs.
This decision follows several months of discussions between India and the U.S., with India remaining firm on key areas like agriculture and dairy during trade talks. By removing the cotton duty, India is showing some flexibility without compromising on its main concerns.
The government’s move aims to ease the pressure caused by the U.S.’s 50% tariff on Indian exports, which is set to take effect by August 27. The exemption will benefit the entire textile supply chain, including yarn, fabric, garments, and made-up products. Meanwhile, the U.S. trade team, scheduled to visit New Delhi for talks on August 25, has cancelled the visit, with no new date set.
The government’s action also reflects concerns about local cotton shortages. Industry groups had warned that a tight cotton supply could lead to higher yarn prices and increased costs for textiles. By allowing duty-free cotton imports, the government hopes to reduce raw material costs ahead of the festival season, when demand for clothing tends to rise.
Here is the List of stocks to watch out for
Vardhman Textiles Ltd
Vardhman Textiles is a leading manufacturer of a wide range of yarn, fabrics, and garments. Based in India, it has a global presence and is known for its high-quality textile products. The company has a vertically integrated business model, from cotton ginning to fabric manufacturing, and is one of the top players in the Indian textile industry.
With a market capitalization of Rs. 12,642.10 crores, the shares of Vardhman Textiles rose by upto 9.3 percent, making a high of Rs. 447.50 per share compared to its previous closing price of Rs. 409.30 per share.
Ambika Cotton Mills Ltd
Ambika Cotton Mills is a prominent Indian manufacturer of cotton yarn. The company specializes in high-quality cotton yarn used in various textiles and garments. With state-of-the-art manufacturing facilities and a focus on sustainability, Ambika Cotton Mills has earned a reputation for quality and reliability in the textile sector.
With a market capitalization of Rs. 869.46 crores, the shares of Ambika Cotton Mills rose by upto 7.5 percent, making a high of Rs. 1536.65 per share compared to its previous closing price of Rs. 1428.45 per share.
Indo Count Ltd
Indo Count Industries Ltd is one of the largest home textile manufacturers in India, specializing in bed linens, sheets, and pillow covers. The company caters to global markets, including the U.S. and Europe, and is known for its high-quality products and commitment to sustainability.
With a market capitalization of Rs. 5,077.12 crores, the shares of Indo Count rose by upto 7 percent, making a high of Rs. 266.00 per share compared to its previous closing price of Rs. 248.50 per share.
Welspun Living Ltd
Welspun Living, a subsidiary of Welspun Group, focuses on the manufacturing of home textiles, including bed linens, towels, and rugs. The company is recognized for its innovative designs and sustainable practices. With a global footprint, Welspun Living supplies its products to major retailers worldwide, making it a prominent player in the home textile sector.
With a market capitalization of Rs. 11,711.25 crores, the shares of Welspun Living rose by upto 6.4 percent, making a high of Rs. 124.75 per share compared to its previous closing price of Rs. 117.15 per share.
Gokaldas Exports Ltd
Gokaldas Exports is a leading apparel manufacturer and exporter based in India. The company produces a wide range of garments, including ready-to-wear clothing for men, women, and children. With a robust manufacturing infrastructure and a reputation for delivering quality products on time, it serves major international brands and retailers.
With a market capitalization of Rs. 5,429.15 crores, the shares of Gokaldas Exports rose by upto 3.5 percent, making a high of Rs. 751.45 per share compared to its previous closing price of Rs. 725.75 per share.
Written by Sridhar J
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