Shares of textile giants such as Kitex Garments, KPR Mill and others rallied nearly 20% on 3rd February, as the sector is being seen as one of the biggest beneficiaries of the India-US trade deal announced late last evening.

India and the US have reached a trade deal that cuts reciprocal tariffs on Indian goods to 18% from 25%. In addition, the deal removes the additional 25% duty on Russian crude purchases, effective immediately.

Labour-intensive sectors such as textiles, gems and jewellery, and engineering goods are expected to be the biggest beneficiaries.

The US is India’s largest textile export market. It accounts for 28% of exports, or about $11 billion in FY25, according to reports.

Higher tariffs had earlier hurt shipments. As a result, exports to the US fell by more than 50% quarter-on-quarter for nearly one-fourth of exporters, as per surveys cited in reports.

The tariff cut gives India a competitive edge over Asian peers. Moreover, it offers structural relief to a sector grappling with weak demand, inventory destocking and margin pressure over the past two years.

At 11:29 AM, Kitex Garments was locked in an upper circuit of 20% at Rs 196.48. Meanwhile, KPR Mill was trading 17.48% higher at Rs 1009.15 on NSE.

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