**MARKET BRIEF: US-INDIA TRADE BREAKTHROUGH** **The Catalyst: Tariff Wall Breached** Indian textile stocks have entered a decisive bull phase following the landmark trade agreement signed **February 2, 2026**. The deal slashes US tariffs on Indian textile exports to **18%**, a sharp reduction from the prohibitive **25–50%** reciprocal duties and penalties that had choked volumes throughout 2025. **Immediate Market Impact** Reaction on Dalal Street was swift and volume-led. Key export-focused counters surged in early trade: * **Gokaldas Exports**: Up **5%** * **Raymond**: Surged **8.18%** * **KPR Mill**: Gained **6%** * **Vardhman Textiles**: Up **7.36%** **Strategic Advantage** This tariff reset fundamentally alters the competitive landscape. * **Price Parity**: At **18%**, Indian exporters now face lower duties than competitors in **Vietnam** and **Bangladesh**, who are grappling with **20%** tariffs and severe internal supply chain disruptions. * **Volume Pivot**: The removal of the "Russian oil penalty" overhang (which had pushed effective duties to **50%** for some categories) is expected to restart stalled order flows from major US retail chains immediately. **Sector Outlook** The textile index is breaking out of a 12-month consolidation. With Bangladesh's spinning industry facing indefinite shutdowns as of **February 1, 2026**, global buyers are aggressively consolidating sourcing into India. The dual tailwinds of **tariff normalization** and **competitor instability** project a robust Q4 FY26 for integrated players. *** [Impact of Regional Crisis on Indian Textiles](https://www.youtube.com/watch?v=rwyykhjc_V0) This video provides essential context on how the concurrent supply chain crisis in Bangladesh is accelerating the shift of export orders to Indian manufacturers, amplifying the benefits of the new tariff deal. http://googleusercontent.com/youtube_content/0