Textile stocks surged on September 16, buoyed by renewed optimism surrounding trade discussions between India and the United States. The uptick comes as trade negotiator Brendan Lynch from the Office of the US Trade Representative (USTR) arrived in India to discuss ongoing trade issues between the two nations.
While Special Secretary Rajesh Agarwal clarified that Lynch’s one-day visit is not the sixth round of formal trade negotiations, but rather a consultation to “discuss trade issues,” investors are hopeful that these talks could pave the way for easing trade tensions that have weighed on bilateral commerce in recent months.
India and the US began negotiations for a Bilateral Trade Agreement (BTA) in March this year and have conducted five rounds of discussions, with the latest held in July in Washington, DC. However, relations soured after President Donald Trump announced a hike in tariffs on Indian goods, doubling them to 50 percent. As a result, the next round of trade talks, initially scheduled for late August in New Delhi, was postponed.
In recent days, relations appear to have improved. Both leaders signaled intent to revive trade discussions, with Trump referring to Prime Minister Narendra Modi as a “dear friend” and expressing optimism about the prospects of enhanced trade cooperation. Modi, in turn, reaffirmed the strong partnership between India and the US and expressed confidence that ongoing talks could unlock new opportunities for both economies.
Finance Minister Nirmala Sitharaman confirmed that India’s diplomatic team remains actively engaged in negotiations. Trump also posted on his social media platform Truth Social, stating, “I am pleased to announce that India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations.”
The positive signals from both sides have reignited investor confidence, particularly in the export-driven textile sector, which stands to benefit from a resolution to trade disputes. Indo Count Industries led the gains with a nearly 10 percent jump, closing at Rs 307.79 per share. KPR Mill shares surged 7 percent to Rs 1,121.80, while Pearl Global Industries rose by nearly 6 percent. Raymond Lifestyle shares gained close to 4 percent, and Arvind shares climbed approximately 2 percent.
With easing tensions potentially restoring trade flows and boosting exports, textile companies are well placed to benefit from renewed diplomatic efforts. Investors will be closely watching developments as further discussions unfold between the two economic powerhouses.
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