India’s textile stocks fell sharply after the US imposed an additional 25% tariff on Indian goods. Export-heavy companies such as Gokaldas Exports, Kitex Garments, and KPR Mill experienced steep declines as investor sentiment turned bearish over reduced competitiveness in the US market.
Shares of prominent Indian textile exporters fell sharply on Thursday after the United States announced an additional 25% tariff on Indian goods, escalating trade tensions and significantly impacting export-oriented sectors.
Textile majors like Kitex Garments extended their losing streak for the 11th consecutive session, locked in the 5% lower circuit for the third straight day. KPR Mill plunged 6.18%, Gokaldas Exports fell 3.86%, and Indo Count Industries dropped 3.15%. Welspun Living and Pearl Global Industries also declined by 3.7% each.
This steep correction comes as President Trump’s administration imposed an additional 25% tariff on Indian exports, citing geopolitical reasons tied to India’s continued purchases of Russian crude oil. The move pushes the total tariff burden on Indian goods sold in the US to 50%, severely affecting the country’s trade competitiveness.
Also Read: India-US Trade Strains Deepen Amid 50% Tariff Escalation
Industry insiders note that these companies have high dependency on the US market. Gokaldas Exports derives nearly 70% of its total revenue from the US. Indo Count Industries has similar exposure, while US revenues make up 65% for Welspun Living and 50% for Pearl Global Industries.
Such dependency has made these companies particularly vulnerable to US trade policy shifts. Investors are now factoring in weaker margins, order disruptions, and increased pricing pressures in upcoming quarters.
“Export-oriented sectors such as textiles, chemicals, and auto ancillaries are poised to bear the brunt of this escalation,” said a senior analyst. “Textile players face a direct margin squeeze as pricing power weakens due to the added tariff cost, while US clients may shift procurement to other regions.”
From a macroeconomic lens, this development comes at a time when India’s export growth was already facing headwinds from global demand moderation and currency volatility. With tariffs on Indian goods now 20% higher than on Chinese counterparts, Indian exporters may need to explore alternate markets or renegotiate contracts to remain viable.
Also Read: US Tariffs Hit Indian Exports With 50% Import Duty
Sectors Most Affected by US Tariffs
| Sector | Key Companies | US Exposure (Est.) |
| Textiles | Gokaldas Exports, Kitex, KPR Mill | 50–70% |
| Chemicals | Camlin Fine Sciences, Aarti, Atul Ltd | 35–50% |
| Auto Components | Bharat Forge, Suprajit, Sona BLW | 30–60% |
The short-term outlook for India’s textile sector remains uncertain. While domestic demand and diversification strategies may offer some relief, the broader concern is the loss of pricing competitiveness in India’s largest export market.
Investors are advised to track further developments in trade policy and quarterly performance reports of high-exposure firms closely.
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