Welspun, Gokaldas, Alok Industries, Trident Lead Textile Surge On US Trade Deal Optimism

India’s textile minister spoke about the need for strategic diversification into 40 identified global markets at an event on Tuesday

Textile stocks surged on Wednesday on renewed optimism around a potential trade deal between India and the US.

At the time of writing, Welspun Living was trading above 9% at ₹124.55, Gokaldas Exports climbed 7% to ₹805.9, Trident gained nearly 5%, Pearl Global surged 8.8%, and Vardhman Textiles advanced over 6%. Raymond climbed up 2.5% to ₹627. Reliance-backed Alok Industries had risen around 5%.

The rally followed comments from US President Donald Trump on Truth Social, where he confirmed that trade talks with India are progressing and expressed his eagerness to speak with “very good friend” Narendra Modi.

Prime Minister Narendra Modi responded on X, saying, “India and the US are close friends and natural partners. I am confident that our trade negotiations will pave the way for unlocking the limitless potential of the India-US partnership. Our teams are working to conclude these discussions at the earliest.”

Tensions had escalated after the Trump administration imposed an additional 25% tariff on Indian exports linked to oil purchases from Russia, taking total duties to 50%. This particularly hurt textiles, seafood, gems and jewellery, with the Global Trade Research Initiative (GTRI) estimating that 66% of India’s exports were at risk.

According to reports, Pearl Global had said that US buyers had begun demanding 15 - 20% discounts to offset the tariffs, warning that prolonged duties could shift $6 billion in exports and threaten lakhs of jobs.

Textile Sector Holds Steady

Despite global volatility and steep tariffs, India’s textile sector experienced growth in July, with exports rising 5.37% to $3.10 billion. Meanwhile, exports from April to July reached $12.18 billion, marking a 3.87% increase, according to official data.

Segment-wise, readymade garments grew 7.87%, carpets 3.57%, and jute products 15.78%, with handicrafts and man-made fibre textiles maintaining steady momentum.

Key growth markets were Japan (+17.9%), the UK (+7.39%), the UAE (+9.62%), and Australia (+1.74%).

Textile Minister Giriraj Singh stressed the need for strategic diversification into 40 identified global markets while increasing domestic demand.

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