India’s textile sector employs over 45 million people and produces around 22 billion garments annually. Valued at $175–$200 billion in 2025, it contributes 2.3% to GDP and 10–12% of total exports. FY24 textile exports stood at $34 billion. The industry remains a vital pillar for economic growth, job creation, and foreign exchange earnings.
Textile stocks are facing cautious sentiment following the US-Vietnam trade deal announced by President Trump. Given Vietnam’s major role in garment exports to the US, the agreement raises concerns for Indian exporters, who may face stiffer competition. Shifting global supply chains and sourcing preferences could limit India’s export growth if tariff advantages favor Vietnam.
Under the new deal, US imports from Vietnam will face a 20 percent tariff, while US exports to Vietnam will be tariff-free. Previously, Vietnam faced a 46 percent reciprocal tariff under the Trump administration, later reduced to 10 percent during a temporary pause. The new terms reshape trade dynamics between the two nations.
India’s ongoing trade negotiations with the US are in their final phase. A favorable tariff structure compared to Vietnam could benefit select Indian stocks. However, while the US-Vietnam deal has been announced, specific product tariffs and broader details remain undisclosed, leaving uncertainty around its potential impact on global trade dynamics.
Gokaldas Exports faces tariff pressures in the US, with total duties reaching up to 28%, prompting potential price hikes that may impact demand. Given that most of its revenue comes from the US, the impact could be significant. KPR Mill, with 21% exposure to North America, may also feel the heat.
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Here are the textile stocks in focus after US President Donald Trump announced a trade deal with Vietnam;
| Company Name | CMP |
| Welspun Living | 142.60 |
| Alok Industries | 20.45 |
| Kpr Mill | 1,143.90 |
| Arvind | 351.40 |
| Gokaldas Exports Ltd. | 921.60 |
| SBC Exports Ltd | 14.55 |
Written by Abhishek Singh
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