Shares of Gokaldas Exports Ltd tanked 6.2% to ₹834.90 on Wednesday, July 31, following U.S. President Donald Trump’s announcement of a 25% tariff on Indian exports starting August 1. The steep drop follows a broader sell-off in Indian textile exporters with high U.S. revenue exposure.
The announcement, which also included a penalty on India for purchasing Russian oil, triggered a decline across key players in the textile space. Alongside Gokaldas, stocks of Welspun Living, Indo Count Industries, and Pearl Global fell by up to 7%.
U.S. Market Exposure Driving the Sell-Off:
- Gokaldas Exports: ~70% of revenue from U.S.
- Indo Count Industries: ~70% U.S. exposure
- Welspun Living: ~65%
- Pearl Global: ~50%
- Arvind Ltd: ~30%
- KPR Mill: ~21%
The textile sector is under pressure as the new tariffs would push total duty costs for Indian apparel exporters to well over 30%, considering existing U.S. duties of 15–18% on such products.
Sivaramakrishnan Ganapathi, Managing Director of Gokaldas Exports, earlier stated that price hikes to offset tariffs may impact demand in the U.S. market. India currently holds a 6% share of the U.S. readymade garment import market, compared to 19% for Vietnam and 9% for Bangladesh.
With Vietnam agreeing to a 20% tariff and Bangladesh already facing a 35% duty, India’s 25% rate places it at a competitive disadvantage. Analysts warn of potential order slowdowns and pricing pressure in the coming quarters for export-heavy Indian garment companies.
