The stocks of textiles surged on October 10 after Prime Minister Narendra Modi revealed that he had spoken with US President Donald Trump, during which the two leaders discussed the “good progress” made in trade negotiations.
Investor sentiment for export-focused textile stocks was boosted by the potential for further trade talks between India and the US, which could lead to a trade deal between the two nations.
PM Narendra Modi wrote, “Spoke to my friend, President Trump, and congratulated him on the success of the historic Gaza peace plan. Also reviewed the good progress achieved in trade negotiations. Agreed to stay in close touch over the coming weeks.”
The recent development follows the imposition of 50 percent tariffs by Trump on Indian imports. Textile companies, which rely heavily on US imports for a significant portion of their revenue, experienced a sharp decline. This situation was exacerbated as competitors in Bangladesh and Vietnam gained a competitive edge, benefiting from much lower tariffs.
Furthermore, another reason for the rally is, according to reports, it indicates that India and the UK have set a target to double trade by 2030, with India’s textile exports to the UK currently around $2 billion (6% of the UK’s textile imports). The Indian government expects textiles to be a major beneficiary of the upcoming India-UK trade deal.
