Shares of Indian textile firms have been in concentrate on Thursday after the US signed a brand new commerce settlement with Vietnam that reduces tariffs on Vietnamese textile and attire exports to twenty per cent, down from the sooner efficient charge of 46 per cent. In accordance with analysts at Angel One Broking, whereas the transfer strengthens Vietnam’s aggressive edge within the international textile market, it places stress on Indian exporters, intensifying the necessity for a beneficial India-US commerce pact.
Vietnam-US Commerce Deal: A Double-Edged Sword for India
The deal, introduced on July 2, grants Vietnam vital tariff reduction when exporting to the US, whereas American items to Vietnam will take pleasure in zero duties. That is anticipated to additional solidify Vietnam’s place as a most popular sourcing hub for international attire and textile giants.
For Indian textile exporters, this improvement will increase the urgency of securing higher entry to the US market. If India fails to barter a tariff charge of 10 per cent or decrease, the comparative benefit might stay with Vietnam, Angel One warns.
India Eyes Aid in Upcoming US Commerce Talks
India and the US are at present in superior talks to finalise a mini commerce deal, which can be signed between July 4–5. The result is anticipated to play an important position in figuring out the aggressive panorama for Indian exporters. Indian negotiators are pushing for tariff cuts in labour-intensive sectors similar to textiles, clothes, and residential furnishings, whereas the US is searching for entry to India’s agriculture and dairy markets.
All eyes are actually on July 9, when new US tariff measures come into impact. A beneficial settlement might provide Indian firms reduction and permit them to raised compete in opposition to Vietnamese exporters.
Gokaldas, KPR Mill, Welspun in Highlight
Gokaldas Exports, which earns practically 75% of its income from the US, traded down 1.06 per cent at Rs 921 regardless of its 3.94 per cent acquire over the previous week.
KPR Mill, with 21 per cent publicity to North America, gained 0.83 per cent to Rs 1,118.60 and is up 13.37% over the previous three months.
Welspun Residing rose 1.33 per cent to Rs 141.51. The inventory has gained 6.84 per cent in three months.
Broader gamers like Vardhman Textiles and Trident additionally stay underneath investor radar, with potential upside if tariff gaps shut in India’s favour.
Investor Takeaway
Whereas Vietnam’s improved tariff entry to the US raises aggressive challenges for India, the upcoming India-US mini commerce deal could flip the tide. If Indian exporters safe lowered duties, shares like Gokaldas Exports, KPR Mill, Welspun Residing, and Vardhman Textiles might see renewed traction and stronger order books within the second half of FY26.
