India’s textile stocks rally as US tariffs hit Asian competitors harder

Indian textile stocks rose after the US imposed steep reciprocal tariffs on Asian exporters, positioning India as a relative beneficiary. While Indian textile products now face a 26 per cent tariff in the US, key rivals such as Vietnam (46 per cent), Cambodia (49 per cent), and Bangladesh (37 per cent) are subject to even higher levies, giving Indian exporters a significant price advantage.

On April 3, Vardhman Textile’s stocks rose 18.41 per cent; Nitin Spinners’ stock increase 9.26 per cent, and Arvind saw a 5.99 per cent rise. KPR Mill saw a two-day gain, rising 7.57 per cent on April 2 and another 2.74 per cent on April 3. These sharp movements reflect growing investor optimism over India’s potential to expand its share in the US textile market. Though markets witnessed mild corrections due to profit-booking and global caution, the sentiment remains upbeat.

Analysts say India’s relatively lower tariff burden could boost demand for its yarns and fabrics in the US, especially in cost-sensitive categories. This policy shift is expected to deliver long-term gains for Indian exporters despite short-term stock volatility. With solid fundamentals and global market tailwinds, companies like Vardhman, KPR Mill, Arvind, and Nitin Spinners are poised to benefit from this evolving trade landscape.