India’s textile industry is one of the largest globally, contributing significantly to employment and exports. It is a leading producer of cotton and exporter of garments, with a rich heritage and growing focus on modern manufacturing. Despite facing challenges like raw material price fluctuations and global competition, the sector remains a key player in global markets.
What Happened
US cotton prices dropped to a four-year low following China’s imposition of retaliatory tariffs of 10-15 percent. India is the leading exporter of cotton yarn, holding a 31 percent share of the global market due to its cheaper cotton.
Trade estimates suggest that India’s cotton imports have risen by over 62 percent in 2024-25 compared to the previous year, due to a decline in domestic production.
How does it benefit the Indian Textile market?
The decline in US cotton prices, due to China’s retaliatory tariffs, could boost demand for Indian garments, textiles, and yarn. The industry anticipates that the availability of cheaper, high-quality US cotton and reduced competitiveness of Chinese textile exports will help India expand its share in the US and European markets.
Cotton Textile Export Promotion Council Director’s Commentary
Siddhartha Rajagopal, executive director of the Cotton Textile Export Promotion Council said: India imports most of its cotton from the US in the extra-long staple (ELS) category. If US cotton prices drop because of lower demand from China, Indian textile manufacturers may find it more affordable to buy more US cotton, making it cost-effective for them to increase imports.
Although India produces most of its own cotton, it imports certain types, like ELS cotton and clean cotton, to meet specific quality needs. From April 2023 to March 2024, India imported $570 million worth of raw cotton, with $221 million (38.7 percent) coming from the US, according to industry data.
He also added that with restricted access in the Chinese market, the US will look to India as a key trade partner for its high-quality Extra Long Staple (ELS) cotton. The tariffs on China are expected to make Chinese textile products less competitive internationally, giving Indian exporters a chance to increase their market share, particularly in the US and EU, and this shift could boost demand for Indian textiles.
Here is the List of Stocks to Benefit:
Arvind Ltd
It is a leading textile manufacturer in India, known for its fabric production and apparel brands. It also has a significant presence in the retail sector, including brands like Flying Machine and Arrow. With a Market Capitalization of Rs. 9,157.95 crores, the stock jumped up 5 percent on the day’s trade.
Vardhman Textiles Ltd
They are a prominent manufacturer of high-quality cotton yarn and fabrics. The company specializes in producing a wide range of textile products for both domestic and international markets. With a Market Capitalization of Rs. 11,566.99 crores, the stock jumped up 2 percent on the day’s trade.
Welspun Living
It is a part of the Welspun Group, focusing on home textiles like bed linens, towels, and rugs. It is known for its innovative designs and strong export presence in global markets. With a Market Capitalization of Rs. 11,538.60 crores, the stock jumped up 3 percent on the day’s trade.
Raymond
Raymond is a well-established brand in India, offering premium fabrics, clothing, and garments. It is known for its luxury woollen fabrics and men’s apparel, including its flagship brand “Raymond”. With a Market Capitalization of Rs. 8,939.85 crores, the stock jumped up 3 percent on the day’s trade.
K P R Mill Ltd
A major player in the textile and garment industry, specializing in spinning, knitting, and garment manufacturing. The company exports a significant portion of its products to international markets. With a Market Capitalization of Rs. 29,772.00 crores, the stock jumped up 3 percent on the day’s trade.
Indo count Industries Ltd
Indo Count Industries is a leading manufacturer of home textiles, particularly bed linens, and export-oriented products. It is known for its advanced manufacturing techniques and global market reach. With a Market Capitalization of Rs. 5,504.92 crores, the stock jumped up 2 percent on the day’s trade.
