The Indian stock market stayed mostly flat on Tuesday July 8 as investors remained unsure about the outcome of the India-US trade deal and rising global trade tensions. But in the middle of this uncertainty textile stocks stood out with many companies seeing a rise in their share prices. One of the top gainers was Mukesh Ambanis Reliance-owned Alok Industries a well-known textile manufacturer. Its stock jumped by 15.30 per cent reaching a 7-month high of Rs. 23.20. This boost came as investors grew hopeful that India’s textile exports could grow especially with new US tariffs hurting competitors like Bangladesh. Just a day earlier US President Donald Trump issued a warning about new tariffs ahead of final trade decisions expected on July 10. The new tariff list includes: 25 per cent tax on goods from Japan South Korea and Malaysia 32 per cent on Indonesia 35 per cent on Bangladesh 36 per cent on Thailand and Cambodia 40 per cent on Laos and Myanmar Even though the new tariff on Bangladesh (35 per cent) is a little lower than the earlier plan (36 per cent) it’s still high enough to hurt Bangladesh’s textile exports. Since Bangladesh depends heavily on its textile industry this move could reduce its trade with Western countries creating a big opening for Indian textile companies to step in and fill the gap. Investors see this as a golden opportunity for Indian textile exporters which is why many textile stocks like Alok Industries are suddenly gaining attention. India’s textile sector may gain big as US tariffs shift global trade Experts believe that the new U.S. tariffs on Bangladesh could encourage American buyers to shift their sourcing to India which is currently in a strong position thanks to supportive government policies. Although the long-awaited India–U.S. trade agreement has seen several delays recent news suggests that a final deal could be announced soon. If signed this agreement is expected to benefit several sectors especially textiles. Earlier this year in May India also signed a major Free Trade Agreement (FTA) with the United Kingdom aimed at increasing trade between the two countries by £25.5 billion (approx. USD 34 billion) by 2040. This agreement offers easier market access and fewer trade barriers and the textile industry is among the sectors set to benefit the most. India is one of the top textile exporters in the world India is already one of the top textile exporters in the world holding around 4 per cent of the global market. In FY 2023–24 over half (about 53 per cent) of India’s textile and apparel exports went to three key markets: the United States the European Union and the United Kingdom. To support this growth the Indian government has been actively promoting the textile sector through reforms and incentive schemes. In the Union Budget for 2025–26 a special five-year plan was announced to improve cotton farming focusing on increasing productivity and making it more sustainable. Spotlight on Alok Industries One company that’s benefiting from all this momentum is Alok Industries a Mumbai-based textile firm established in 1986. The company has operations in both cotton and polyester and offers a wide range of products—from yarn to garments bedsheets and towels. It has full control over its cotton supply chain—from spinning to weaving to final processing. In 2020 Reliance Industries Ltd (RIL) in partnership with JM Financial Asset Reconstruction Company acquired Alok Industries through an insolvency auction. As of the March 2025 quarter RIL owns a 40 per cent stake and JM Financial holds 34.99 per cent. With India well-positioned on the global textile stage and companies like Alok Industries backed by strong investors and rising demand the sector seems poised for long-term growth—especially if new trade deals work in India’s favor.