India’s garments and apparel sector is poised for significant growth, with revenue projected to increase by 9–11% in FY26 after a 12-14% rise in FY25. The total market size is expected to reach $190 billion by 2025-26. Apparel exports are a key driver, having increased by 8.91% to $4.19 billion in the first quarter of FY26.
Shares of the textile company declined today following news that U.S. President Donald Trump signed an executive order doubling tariffs on Indian goods from 25% to 50%.
The initial 25% hike takes effect tonight (Eastern Time), with the remaining 25% to follow after 21 days. The move has raised concerns over export competitiveness and potential impact on the sector’s profitability.
Textile stocks have come under pressure over the past week following Donald Trump’s announcement of a 25% tariff on Indian exports. This move has triggered investor selling, particularly in companies heavily reliant on the U.S. market.
Gokaldas Exports and Indo Count Industries generate around 70% of their revenue from the U.S., while Welspun Living and Pearl Global derive approximately 65% and 50%, respectively, making them more vulnerable to trade-related uncertainties and tariff impacts.
Furthermore, the increased tariff means a wider gulf between India and other competing nations within the textile market, such as Bangladesh, Vietnam, and even Pakistan.
Bangladesh’s tariff rate was recently brought down to 20% from 35% earlier, while Pakistan, which recently announced a deal with the US, will pay a 19% tariff from 29% earlier. Vietnam, too, recently concluded a deal with the US by agreeing to a 20% tariff levy.
Additionally, the higher tariff on Indian textiles widens the competitive gap with key rivals like Bangladesh, Vietnam, and Pakistan. While India faces a risk of a 50% tariff, Bangladesh’s rate has been reduced to 20% from 35%, and Pakistan now pays 19% after a recent U.S. deal, down from 29%. Vietnam also finalized a deal, agreeing to a 20% tariff. These reductions give competing nations a pricing edge over Indian exporters in the crucial U.S. market.
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Here are the Textile stocks that have fallen after US announces 50% tariff on India;
| Company Name | CMP | Movement |
| Gokaldas Exports Ltd | 705.00 | -1.08 |
| KPR Mill Ltd | 1,002.30 | -3.57 |
| Welspun Living Ltd | 114.56 | -1.12 |
| Pearl Global Industries Ltd | 1,283.90 | -3.71 |
| Indo Count Industries Ltd | 244.00 | -1.31 |
Written by Abhishek Singh
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