Gokaldas Exports, Vardhman Textiles, Trident: Textile stocks zoom 20% as US lowers tariffs to 18%; details to know

India and the US agreed on a trade deal under which Washington will bring down the reciprocal tariff on Indian goods to 18% from the current 25%, US President Donald Trump said on Monday, after a phone conversation with Prime Minister Narendra Modi.

Textile stocks were among the worst hit following the announcement of reciprocal tariffs and trade deals with other countries, given their significant exposure to the US market. Most companies in the sector derive between 50% and 70% of their total revenue from the US.

How individual stocks are faring

At the time of writing this article, Gokaldas Exports shares were locked in the 20% higher circuit at ₹694.05 apiece on the NSE. Vardhman Textiles was trading nearly 12% higher at ₹510.90 on the NSE. Welspun Living was trading around 18% higher at ₹144.20, while Trident shares were up over 12% at ₹28.98 apiece on the NSE.

Indo Count Industries was also locked in the 20% upper circuit at ₹286.33.

Mega textile parks: India boosts textile sector

Another positive factor for the textile stocks is the announcement by the finance minister of the setting up of Mega Textile Parks.

FM Nirmala Sitharaman, in her Budget 2026-26 speech on Sunday, announced the setting up of Mega Textile Parks in challenge mode with a focus on integrated infrastructure and value addition, among a raft of reforms, including a five-pronged integrated policy framework, to provide a shot in the arm to India's employment-intensive textile sector.

The proposed establishment of new Mega Textile Parks will attract investments, improve compliance and traceability, and create integrated hubs for scale, quality control and exports.

It will also support growth in technical textiles, a high-potential segment critical for industrial, medical, defence and infrastructure applications.

To strengthen khadi, handloom and handicrafts, the Mahatma Gandhi Gram Swaraj Initiative will be launched. The initiative will focus on global market linkage, branding, streamlined training, skilling, quality improvement and process modernisation. It will benefit weavers, village industries and rural youth and support the One District One Product (ODOP) initiative.

In a major boost to exports of textiles, leather and marine products, the Budget announced the extension of the export obligation period from 6 months to 12 months for exporters of textile garments, leather garments, leather or synthetic footwear and other leather products manufactured using duty-free imported inputs.

This measure will provide greater operational flexibility, ease of compliance and improved working capital management for textile exporters, currently grappling with 50 per cent tariffs on Indian goods imposed by the US, India's largest export market.

In her budget speech, Union Finance Minister Nirmala Sitharaman said, "For the labour-intensive textile sector, I propose an integrated programme with 5 sub-parts." Under these five sub-parts, she announced a 'National Fibre Scheme' for self-reliance in natural fibres such as silk, wool and jute, man-made fibres, and new-age fibres.