Following the Government’s announcement over the weekend of restrictions on the entry of Bangladeshi ready-made garments into India, the shares of leading textile manufacturers, including Arvind, Trident, Alok Industries, Gokaldas Exports, Page Industries, Welspun Living, Indo Count, Lux Industries, Aditya Birla Fashion and Retail, and Siyaram Silk, increased between 1 per cent and 7 per cent in trading on Monday.
KPR Mill gained 3 per cent, Alok Industries gained 4.7 per cent, Raymond Life gained 1.2 per cent, Siyaram Sil gained 7 per cent, Page Industries gained 1.8 per cent, Aditya Birla Fashion and Retail soared 4.4 per cent, Trident increased 2.8 per cent, Gokaldas Exports increased 2.8 per cent and Arvind’s shares increased 4.2 per cent.
Bangladesh’s trade with India is expected to suffer as a result of the Government’s decision to forbid the imports of a variety of goods including ready-made garments via land transit stations and only allow ready-made garments to be imported through the sea ports of Kolkata and Nhava Sheva.
The trade action closely echoes Bangladesh’s ban on Indian exports, even though the Indian government has not provided an official explanation for its decision. Among these is a prohibition on yarn entering five important land ports. In 2024, India sent $1.6 billion worth of cotton yarn and around $85 million worth of manufactured fibre (MMF) yarn.
In addition, Dhaka ended years of free movement under regional cooperation frameworks by imposing a transit tax on Indian commodities travelling through its territory.
Of late, shares of leading Indian textile manufacturers have been on the rise for a number of reasons, chief of which are the de-escalation of the US-China tariff war and the conclusion of the India-UK FTA.
For instance, in a research, credit ratings agency ICRA predicted that within five to six years of the new tariffs going into effect, India’s textile export volumes to the UK will double from their current levels, resulting in the development of incremental capabilities.
