Shares of Indian textile and shrimp companies dropped in trade on Thursday after the US raised tariffs on Indian imports to 50%, affecting export-oriented sectors significantly.
The additional 25% tariff, signed by US President Donald Trump, took effect on August 27, but markets were closed for Ganesh Chaturthi, so the impact became visible in today’s session.
Textile Stocks Impacted:
- KPR Mill and Raymond Lifestyle: Down ~3%
- Welspun Living: Down ~2%
- Trident: Down over 1%
- Gokaldas Exports: Down nearly 1%
The 50% tariff is far higher than that applied to India’s Asian peers, with Bangladesh and Vietnam paying only 20%, intensifying pressure on Indian exporters.
Shrimp Industry Impact:
- Apex Frozen Foods: Fell ~5%
- Avanti Feeds: Down ~4%
The US was the top importer of Indian frozen shrimp in 2024-25, with exports worth US$ 2,714.94 million, accounting for 92.55% of total US dollar revenue from India’s seafood exports.
The tariff hike is expected to weigh on profit margins for export-oriented companies in both sectors.
Market Outlook: Analysts suggest that while export sectors face near-term headwinds, investors may shift focus to domestic consumption-driven largecaps until the US-India trade situation stabilizes.
Disclaimer: The information provided is for general market awareness and news purposes only. Investors should consult certified financial advisors before making any investment decisions.
