India's Textile Stocks Fall After US-Bangladesh 0% Tariff Deal

Indian textile stocks fell on 10 February after the US–Bangladesh reciprocal trade agreement, following an earlier rally on the India–US framework announcement.

Gokaldas Exports dropped over 5%, KPR Mill and Arvind fell more than 4% each, while Pearl Global Industries declined over 3.5%.

Under the US–Bangladesh deal, selected textile and apparel goods will enter the US at 0% reciprocal tariff, with volumes linked to Bangladesh’s use of US cotton and MMF inputs.

India’s textile exports to the US will see tariffs reduced to 18% from 50%, while the overall US tariff on Bangladeshi exports stands at 19%, slightly above India’s rate.

Despite India securing an 18% rate, investor concerns persist over zero-tariff access for certain Bangladeshi apparel shipments intensifying US market competition.