Welspun Living, Vardhman, Gokaldas Exports, Pearl Global: Textile stocks tumble up to 11%; here's why
These firms, heavily reliant on the US market, face challenges as nearly 70% of Gokaldas Exports' revenue and 65% of Welspun Living's revenue come from the US.
- Jul 31, 2025,
- Updated Jul 31, 2025 12:41 PM IST
The US President, Donald Trump, has announced a 25% tariff on Indian goods, effective from August 1, leading to a sharp decline in textile stocks on July 31. Textile manufacturers such as Welspun Living (6.51%), Indo Count Industries (7.44%) , Vardhman Textiles (4.57%), Gokaldas Exports (8%), Pearl Global (10.64% ) and KPR Mills (5.14%) lost between 4% and 11% after Trump's tariff and penalty threat. These firms, heavily reliant on the US market, face challenges as nearly 70% of Gokaldas Exports' revenue and 65% of Welspun Living's revenue come from the US. Following the tariff declaration, President Trump stated, "After announcing the tariffs, President Donald Trump said the U.S. is still negotiating with India on trade."
The broader stock market also felt the impact, with shares of Vedant Fashions and Trident dipping by 4.73% and 3%, respectively. Arvind Ltd and Raymond Lifestyle shares dropped by 3% and 1.3%. Analysts highlight that these tariffs could pose a short-term negative effect on exports and GDP growth, and Utsav Verma, head of research at Choice Institutional Equities, remarked, "Investors will reassess their strategies with a mix of caution and optimism after the tariffs and penalties imposed on Indian goods."
India faces stiff competition in apparel exports from countries like Bangladesh and Vietnam. While Bangladesh faces a 35% tariff, Vietnam has negotiated a 20% tariff with the US. The newly proposed tariffs on Indian goods are expected to revive negotiations, with talks set to resume in mid-August.
"Sectors like textiles, pharmaceuticals and automotive components are likely to be most impacted and may see reduced investor interest in the short term," added Verma. The market remains volatile until further clarity emerges on the ongoing trade negotiations. With the potential for significant economic repercussions, the stakes are high for both nations involved.
The US President, Donald Trump, has announced a 25% tariff on Indian goods, effective from August 1, leading to a sharp decline in textile stocks on July 31. Textile manufacturers such as Welspun Living (6.51%), Indo Count Industries (7.44%) , Vardhman Textiles (4.57%), Gokaldas Exports (8%), Pearl Global (10.64% ) and KPR Mills (5.14%) lost between 4% and 11% after Trump's tariff and penalty threat. These firms, heavily reliant on the US market, face challenges as nearly 70% of Gokaldas Exports' revenue and 65% of Welspun Living's revenue come from the US. Following the tariff declaration, President Trump stated, "After announcing the tariffs, President Donald Trump said the U.S. is still negotiating with India on trade."
The broader stock market also felt the impact, with shares of Vedant Fashions and Trident dipping by 4.73% and 3%, respectively. Arvind Ltd and Raymond Lifestyle shares dropped by 3% and 1.3%. Analysts highlight that these tariffs could pose a short-term negative effect on exports and GDP growth, and Utsav Verma, head of research at Choice Institutional Equities, remarked, "Investors will reassess their strategies with a mix of caution and optimism after the tariffs and penalties imposed on Indian goods."
India faces stiff competition in apparel exports from countries like Bangladesh and Vietnam. While Bangladesh faces a 35% tariff, Vietnam has negotiated a 20% tariff with the US. The newly proposed tariffs on Indian goods are expected to revive negotiations, with talks set to resume in mid-August.
"Sectors like textiles, pharmaceuticals and automotive components are likely to be most impacted and may see reduced investor interest in the short term," added Verma. The market remains volatile until further clarity emerges on the ongoing trade negotiations. With the potential for significant economic repercussions, the stakes are high for both nations involved.