From Tariffs To Talks: Vardhman Textiles, Gokaldas Exports Lead Textiles Rally On Renewed India-US Dialogue

Brendan Lynch, chief negotiator from the US Trade Representative’s office, will hold discussions with Indian officials on Tuesday.

Textile stocks rallied sharply on Tuesday as optimism grew that India and the US could be moving closer to a trade breakthrough.

Shares of companies such as Vardhman Textiles, Trident, Gokaldas Exports, Indo Count Industries, Pearl Global, Welspun Living, and KPR Mill gained up to 6% intraday, buoyed by the possibility of easing trade tensions.

India-US Trade Talks Resuming

The positive sentiment comes ahead of a meeting in New Delhi where Brendan Lynch, chief negotiator from the US Trade Representative’s office, will hold discussions with Indian officials. The talks have raised hopes of progress after negotiations stalled last month when the US raised tariffs on Indian exports to 50% in response to India buying Russian crude.

Earlier this month, US President Donald Trump described Prime Minister Narendra Modi as a “dear friend” and reiterated his commitment to resuming talks, while Modi reaffirmed that India and the US are “natural partners.” Commerce Minister Piyush Goyal added that the first tranche of the trade deal could be signed by November.

Impact on Textile Sector

The textile sector, one of the hardest hit by these tariffs, relies heavily on the US market, which accounts for 50 - 70% of revenues for several firms. In 2024, India exported $10 billion worth of textiles and apparel to the US.

India has set an ambitious target of $100 billion in textile exports by 2030. However, industry players warn that unless tariff disadvantages are addressed, India risks losing market share to its regional competitors like China and Vietnam.

Any easing of tariff barriers would provide significant relief to the sector, which contributes around 12% to India’s total exports and directly employs over 45 million people.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<