Gokaldas Exports, Vardhman Textiles, Arvind: Textile stocks rose up to 16% today; here's why 

Shares of textile firms and related sector rose up to 16% on Tuesday after the Modi government suspended 11% import duty on cotton from August 19 to September 30. The move is temporary and is expected to support textile mills and exporters struggling with rising costs and steep tariffs in key markets.

Shares of Welspun Living (6.48%), Vardhman Textiles (9.33%), Ambika Cotton Mills (7.57%), Arvind Ltd (3.54%), Gokaldas Exports (3.54%) and Lambodhara Textile (16%) were among the top sectoral gainers in Tuesday's trading session. 

According to a notification issued by the ministry of finance, the Central Board of Indirect Taxes and Customs (CBIC) said all imports under heading 5201—covering raw cotton—will be exempt from duties between 19 August and 30 September. 

The temporary exemption follows demands from industry groups, including the Confederation of Indian Textile Industry (CITI), to withdraw duties to make the sector more competitive. The Indian textile industry faces 50% tariff on exports to the United States, including an existing 25% levy and an additional 25% penalty due later this month over India’s purchases of Russian oil.

The Indian government imposed the duty in February 2022, which cut the share of US cotton in India’s imports to 19% in fiscal 2024-25 from 40–50% earlier. Mills shifted to Brazilian cotton to compete with Bangladesh and Vietnam, which had continued access to cheaper US supplies.

Meanwhile, Sensex rose 370 pts to 81,644 and Nifty gained 112 pts to 24,989 in final minutes of trade on Tuesday.