The government has halved benefits under the RoDTEP scheme for exporters in textiles, and gems & jewellery, restricting incentives to 50% of notified rates and value caps with immediate effect.
Commerce Minister Piyush Goyal has indicated India may secure zero-duty textile access to the US, matching a tax relief granted to Bangladesh that has put Indian exporters under pressure.
Despite today's decline, in the past one month, these stocks have outperformed the market, surging up to 33 per cent, as against 0.56 per cent rise in the benchmark Sensex.
Textile stocks in focus: Lower reciprocal tariffs and recent trade deals with UK/EU provide multi-year advantage to boost earnings/cashflows by enhancing export base for the sector, believe analysts.
The US-India trade deal is particularly positive for export-oriented sectors with meaningful exposure to the US market, say analysts.
US President Donald Trump said he would lower his 50 per cent tariff on Indian goods to 18 per cent after India agreed to stop buying Russian oil
Textile-related stocks rally: Finance Minister Nirmala Sitharaman in Budget 2026 proposed to set-up mega textile parks to focus on value addition in technical textiles.
Textile stocks to buy: Analysts say the India-EU FTA could boost Indian textile exports by cutting EU tariffs to zero. Here are key beneficiaries
Thus far in the month of January 2026, the Smallcap index has underperformed the market by falling 6.3 per cent, as compared to 2.8 per cent decline in the BSE Sensex.
US tariff impact? In the past seven weeks, the market price of Gokaldas Exports has plunged 33 per cent from a level of ₹948.85 on November 20, 2025 on the BSE.
In case of lower US tariffs, shares from IT, gems & jewellery, shrimps and textile-related sectors are likely to benefit, believe analysts.