Arvind, Trident rally up to 10% as Budget 2026 announces plans to set up large textile parks

Shares of textile companies rallied sharply on Sunday, February 1, after Finance Minister Nirmala Sitharaman announced plans to set up large new textile parks in her Union Budget 2026 speech.

“I propose to set up mega textile parks in challenge mode,” said Sitharaman, adding that the new mega textile parks will especially focus on higher-margin technical textiles as part of a multi-pronged approach to expand India’s textile sector.

At 11:39 am, shares of Arvind Ltd were trading 9.8% higher at ₹326.4 apiece on the National Stock Exchange of India (NSE). Raymond Ltd also shot up 7% to ₹399.9, Vardhman Textiles gained 6.3% at ₹439.65, Indo Count Industries Ltd rallied 6.4% to ₹239.18, Trident Ltd advanced 5% to ₹27.11, while Welspun Living Ltd rose 2.4% to ₹125.98. KPR Mill Ltd also jumped 3.5% to ₹893.8 per share.

Finance Minister announced a comprehensive 5-point plan for India’s textile sector development -- the National Fibre Scheme, man-made and new-age fibres, a textile expansion and employment scheme, the National Handloom and Handicrafts Programme, and the TEX-ECO initiative, alongside Samarth 2.0 for modernised skilling.

The Finance Minister also proposed to launch the Mahatma Gandhi Gram Swaraj initiative to strengthen handloom and handicrafts.

“This will help in global market linkages and branding. It will streamline and support training, skilling, and quality processes in production. These measures will benefit our weavers, village industries, the One District, One Product (ODOP) initiative, and our rural youth,” she said.

The Budget announcement for the textile sector added to the positive momentum that textile stocks are witnessing after India recently signed free trade agreements with the EU and the UK.

Under the proposed deal, tariffs on a wide range of goods will be reduced or eliminated, opening opportunities for India’s labor-intensive sectors, including textiles and apparel. Currently, Indian textile exports to the EU face tariff barriers of 10-16%.