Despite the Donald Trump administration’s higher-than-expected tariffs on India, Indian textile stocks saw positive trading. Nonetheless, India is one of the least-tariffed Asian exporters due to the 26% levy on its exports.
According to a set of charts posted on social media by the White House, other major Asian exporters are subject to even higher tariffs: China’s exports to the US are now subject to a 54% levy, Vietnam’s to 46%, Bangladesh’s to 37%, and South Korea’s to 25%. On Thursday, April 3, the textile industry was one of the main winners in trade, but other industries held up well against strong selling pressure. Stocks of Indian textiles, such as Vardhman Textiles, increased by up to 18% to ₹475 each, while Gains of 1% to 10% were recorded by Ambika Cotton Mills, KPR Mills, Welspun Living, S.P. Apparels, Nitin Spinners, Arvind, and Himatsingka Seide.
Expectations have increased that India may be able to increase its textile exports as a result of the US imposing a 37% tariff on Bangladesh. In a recent analysis, domestic stockbroker Prabhudas Lilladher said that increased textile and garment tariffs provide India a chance to outperform the US market.
Bangladesh’s economy is based mostly on the textile sector, which contributes 15% of its GDP and 80% of its exports. The United States, Canada, Australia, Japan, and the European Union are its main export markets.
Bangladesh’s total exports reached a new high of $55.56 billion in 2022–2023, driven mostly by a notable increase in clothing exports. According to the Export Promotion Bureau (EPB), apparel exports alone jumped to almost $47 billion, a 10.27% increase from the year before. But the US’s 37% reciprocal taxes on Bangladeshi goods have sparked worries, with analysts speculating that American consumers would now look to India, which is currently in a strong position to gain.
Despite all these developments across the world, the Indian government has decided to increase the textile sector by offering incentives and increasing domestic manufacturing. The government is going to boost farmers with high-quality cotton and support the traditional industry.
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