Gokaldas Exports, other textile stocks jump up to 7% after India-US interim trade framework confirms tariff reduction to 18%

Textile stocks rise

• Textile stocks rose as US agreed to reduce tariffs to 18%.
• Gokaldas Exports, Arvind, Raymond Lifestyle, K.P.R. Mill shares surged in trade
• India-US interim trade deal aims for balanced, reciprocal market access

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The shares of export-oriented textile stocks jumped in trade on February 9 after India and US announced a framework for their much-awaited interim trade deal agreement, which confirmed that the US tariffs on Indian exports would be reduced to 18 percent.

Gokaldas Exports shares jumped 6.5 percent to trade at Rs 832.1 apiece, while Arvind shares surged around 7 percent to trade at Rs 393.90 apiece. Raymond Lifestyle shares rose nearly 5 percent, while K.P.R. Mill shares gained around 4 percent.

India-US trade deal framework:

India and US on February 6 released a framework for an interim agreement regarding reciprocal and mutually beneficial trade (Interim Agreement). "Today's framework reaffirms the countries’ commitment to the broader U.S.-India Bilateral Trade Agreement (BTA) negotiations, launched by President Donald J. Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains," the countries said in a joint statement.

India and US said that their interim agreement will represent a "historic milestone" in their partnership, which would demonstrate a common commitment to reciprocal and balanced trade based on mutual interests and concrete outcomes.

According to the framework, US agreed to reduce its tariffs on Indian exports of textile and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery to 18 percent. Subject to the successful conclusion of the Interim Agreement.

This move is expected to bring major relief to these export-oriented companies, whose stocks earlier had seen significant decline after US hiked tariffs on Indian exports to 50 percent, citing New Delhi’s continued purchase of Russian oil.

Separately, US President Donald Trump in an executive order removed the additional 25% tariff imposed on Indian goods for Russian oil purchases as New Delhi "committed to stop directly or indirectly importing" Russian oil.

"The United States and India will work towards further expanding market access opportunities through the negotiations of the BTA. The United States affirms that it intends to take into consideration, during the negotiations of the BTA, India’s request that the United States continue to work to lower tariffs on Indian goods," the framework released by the two companies further said.

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