Indian Textile Stocks Plunge 5% as US-Bangladesh Zero-Tariff Deal Sparks Competition Fears

• Indian textile shares, including Gokaldas Exports, KPR Mill, and Arvind, dropped up to 5% today.
• The decline follows a new US-Bangladesh trade agreement offering zero tariffs on certain Bangladeshi textile imports to the US.
• Investors fear increased competition for Indian textile companies in the US market, leading to profit booking.
• The US-Bangladesh deal specifies zero tariffs on textile imports up to a quantity proportional to US cotton exports to Bangladesh.
• This contrasts with the recent India-US deal, which reduces US tariffs on Indian textiles from 50% to 18%, raising concerns about competitive disadvantage.