Indian apparel and textile stocks slid sharply on Friday after the United States, under the Trump administration, announced significant tariff cuts on imports from Bangladesh and Pakistan—key competitors in the global ready-made garment (RMG) market.

Shares of major textile companies including Kitex, Pearl Global, KPR Mill, and Welspun Living dropped between 2% and 7% as investors reacted to the trade shift that could erode India’s price competitiveness in the crucial US market.

Pearl Global Industries fell 7.2% to ?1,380.05
KPR Mill dropped 4.3% to ?1,092
Gokaldas Exports slid 3.1% to ?824.50
Arvind Ltd declined 1.8% to ?310.40
Welspun Living lost 1.9% to ?123.80

The losses came after the US announced revised import duties, slashing tariffs on Bangladeshi garments from 35% to 20%, and on Pakistani goods from 29% to 19%. Vietnam, Malaysia, Indonesia, and the Philippines also received more favourable rates at 19–20%.

India, however, continues to face a 25% import tariff, leaving its textile exports relatively disadvantaged.

“This is a body blow for Indian garment exporters,” said a senior analyst at Edelweiss Securities. “The US remains India’s largest export market, and these tariff cuts make Bangladesh and others much more competitive, especially in cost-sensitive segments.”

Bangladesh is already the world’s second-largest apparel exporter and a dominant player in the US RMG market. The tariff reductions are expected to fuel further gains for Dhaka-based manufacturers, who have recently also benefited from regional trade agreements and policy reforms.

Meanwhile, Pakistan is reportedly set to deepen its economic cooperation with the US, including a new joint initiative on oil exploration—another factor that may help Islamabad strengthen its geopolitical and economic ties with Washington.

Indian exporters warn that the latest move could lead to loss of market share, especially in labour-intensive categories where Bangladesh holds a clear cost advantage. Many industry players have urged the Indian government to accelerate bilateral trade negotiations to secure parity or preferential access to key Western markets.

“If India doesn’t respond diplomatically or via trade pacts, the textile sector will face severe headwinds over the next 12–18 months,” said a Mumbai-based apparel exporter.

With the next US-India Trade and Investment Forum scheduled for later this year, eyes will now turn to whether New Delhi can negotiate a tariff rollback or secure sectoral exemptions to counter the emerging imbalance.