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Hindustan Times
08-07-2025
- Business
- Hindustan Times
Indian textile firms' share prices surge as Trump imposes 35% tariff on Bangladesh
Share prices of textile industries skyrocketed on Tuesday as US President Donald Trump imposed a 35 per cent tariff on Bangladesh, which plays a crucial role in the Indian textile sector. US President Donald Trump imposed a 35 per cent tariff on Bangladesh, a nation which plays a crucial role in the Indian textile sector. (Reuters) Bangladesh acts as a major manufacturing hub for garments, especially for the global clothing market, as well as a crucial market for Indian textile exports. Shares of textile companies like Gokaldas Exports Limited, KPR Mill Limited, Vardhman Textiles Limited, Arvind Limited, etc, saw a sharp rise in Tuesday trading. Gokaldas Exports Limited's shares rose 8 per cent in early trade and reached an intraday high of ₹975. The shares of KPR Mill, meanwhile, surged up to 4 per cent and reached a day's high of ₹1,222.90. Vardhman Textiles Limited's shares rose by over 7 per cent and went as high as ₹539.90. The shares of Arvind Limited recorded a 2 per cent rise and hit a high of ₹356.80. The share prices rose as a result of Trump's announcement of dramatic new tariffs on goods from Bangladesh. He issued "take it or leave it" offers and detailed the tariffs the 14 countries will now have to pay on goods exported to the US. While a 35 per cent tariff was imposed on Bangladesh, Laos and Myanmar were the ones to bear the maximum brunt of Trump's levies, a whopping 40 per cent tariff. Meanwhile, the US President imposed a levy of 36 per cent on Cambodia and Thailand, 35 per cent on Serbia, 32 per cent on Indonesia, 30 per cent on South Africa, and 25 per cent each on Japan, South Korea, Tunisia, Malaysia, and Kazakhstan. Tariff on India While India and the US are on their way to a trade deal, the current Trump tariff rate on New Delhi stands at 10 per cent. Washington on Monday extended the suspension of its April 2 reciprocal tariffs until August 1, a move that will provide extra time to governments of both countries to resolve outstanding issues and seal a final trade deal. ALSO READ | US extends suspension of tariffs on India till Aug 1, giving trade talks a boost The initial suspension, which was supposed to expire on July 9, was prolonged "based on additional information and recommendations from various senior officials" and due to the ongoing discussions with the trading partners, the White House confirmed. Indian and US representatives have been actively engaged at the negotiating table to reach a bilateral trade agreement.
Time of India
09-05-2025
- Automotive
- Time of India
India-UK FTA: JLR, Diageo among winners of model trade deal
HighlightsIndia has agreed to slash tariffs on United Kingdom-made cars and whiskey as part of a comprehensive trade agreement, making it cheaper for UK companies to sell a variety of goods in India. The deal will reduce whiskey and gin tariffs from 150 per cent to 75 per cent, eventually settling at 40 per cent after ten years, providing a significant opportunity for Diageo Plc, which produces Johnnie Walker whiskey and Tanqueray gin. The trade agreement is expected to enhance India's competitiveness in the textile sector, allowing Indian apparel exporters to better compete against countries like Bangladesh and Vietnam, with companies such as Gokaldas Exports Limited and Welspun Living Limited seeing stock price increases. India's decision to slash tariffs on UK-made cars to whiskey as part of a sweeping trade pact could create a line of winners, including Jaguar Land Rover and Diageo Plc. The Free Trade Agreement , announced Tuesday after three years of negotiations, will make it cheaper for UK firms to sell their whiskeys, cars, auto parts, cosmetics, biscuits, clothes and electrical machinery in the world's most populous nation. Indian exporters to the UK will benefit from lower levies on 99 per cent of products and services. The deal saw India opening up some of its most protected sectors — cars for instance — and sets a precedent for other trade pacts under discussion, including with the European Union and the US. Such bilateral agreements also provide a cushion against the tariffs pain inflicted by US President Donald Trump. UK-India Trade by Commodity and Services The trade pact might kick in after a year, DBS Bank Ltd. Economist Radhika Rao wrote in a May 7 note. Bilateral commerce is expected to nearly double in a few years from $21 billion in the year ended March 2024, she wrote. As exporters and companies await the fine print of the deal, here's a quick list of probable winners and losers: AutomobilesWhile the reduced tariffs — from 110 per cent to 10 per cent — will start with fossil fuels-fed cars, these will eventually be extended to the electric and hybrid vehicles over a 10-year timeline, according to information on the UK government website. The UK will also offer Indian carmakers the opportunity to export these technologies to that country, with similar riders. Beneficiaries may include JLR and other luxury brands with factories in the UK such as Bentley, Aston Martin, Vauxhall and Mini. Domestic carmakers like Mahindra & Mahindra Ltd. and Maruti Suzuki India Ltd. , which have invested in EV, may feel the pinch. It is unclear how these concessions will be structured and what price threshold will apply to a quota of cars that can be imported with these lower tariffs. While this is the first time India has taken steps to liberalise its nascent EV market, it has stopped short of handing UK carmakers an immediate low-cost entry, giving local firms some runway to bulk up. Liquor Makers Whiskey and gin tariffs will be halved to 75 per cent before settling at 40 per cent by the 10th year of the deal, according to the pact's terms. In 2022, India imported over £200 million ($266 million) worth of whiskey from the UK, paying duty at the rate of 150 per cent. Diageo, which makes Johnnie Walker whiskey and Tanqueray gin, may gain from this. Shares of its Indian unit, United Spirits Ltd., jumped as much as 2.8 per cent on Wednesday. The treaty will enable 'improved accessibility and choice of scotch for the Indian consumers' in the world's largest whiskey market, Praveen Someshwar, managing director at Diageo India , said in a statement. Elara Capital's Karan Taurani said the duty reduction will see prices of these drinks falling by 15%-20%, and will make premium spirits more accessible to Indian buyers. The duty cuts could have a small negative impact on homegrown liquor brands such as Royal Ranthambore, marketed by Radico Khaitan Ltd. , according to Taurani. Its shares slipped 3.6%. 'Domestic players focused on upper prestige and above may see short-term aberration in growth,' he said. Textile Makers Clothes are the second-largest export to the UK from India, with the South Asian nation shipping £900 million worth of goods in 2024. The removal of tariffs will enhance India's competitiveness against countries like Bangladesh and Vietnam, according to the Federation of Indian Export Organisations. Apparel retailers such as Marks and Spencers and Primark are expected to shift sourcing to India from Bangladesh after this deal, according to P Senthilkumar, a partner at Vector Consulting. Gokaldas Exports Ltd. and Welspun Living Ltd. rose 12 per cent on Wednesday while Indo Count Industries Ltd. advanced 11.3%. Medical Devices Indian exporters would be able to sell medical devices at a lower cost in the UK. This includes cardiac, orthopedic implants, syringes, blades, blood bags and glucometers as well as its wearables to the UK at a lower cost, Rajiv Chhibber, joint coordinator at the Association of Indian Manufacturers of Medical Devices, told Bloomberg News. UK-based companies would be able to increase supply of electronic goods such as Magnetic Resonance Imaging machines, slicers, cancer therapeutics to India, he added. Financial Services 'The deal will secure UK companies' ability to deliver financial services to clients in India,' the UK government said on its website. India and the UK agreed to cooperate and innovate on financial technology services, particularly developing an efficient environment for cross-border payments. That is expected to ease international payments for tourists, students, businesses and investors.
Time of India
09-05-2025
- Automotive
- Time of India
India-UK FTA: JLR, Diageo among winners of model trade deal
HighlightsIndia has agreed to slash tariffs on United Kingdom-made cars and whiskey as part of a comprehensive trade agreement, making it cheaper for UK companies to sell a variety of goods in India. The deal will reduce whiskey and gin tariffs from 150 per cent to 75 per cent, eventually settling at 40 per cent after ten years, providing a significant opportunity for Diageo Plc, which produces Johnnie Walker whiskey and Tanqueray gin. The trade agreement is expected to enhance India's competitiveness in the textile sector, allowing Indian apparel exporters to better compete against countries like Bangladesh and Vietnam, with companies such as Gokaldas Exports Limited and Welspun Living Limited seeing stock price increases. India's decision to slash tariffs on UK-made cars to whiskey as part of a sweeping trade pact could create a line of winners, including Jaguar Land Rover and Diageo Plc. The Free Trade Agreement , announced Tuesday after three years of negotiations, will make it cheaper for UK firms to sell their whiskeys, cars, auto parts, cosmetics, biscuits, clothes and electrical machinery in the world's most populous nation. Indian exporters to the UK will benefit from lower levies on 99 per cent of products and services. The deal saw India opening up some of its most protected sectors — cars for instance — and sets a precedent for other trade pacts under discussion, including with the European Union and the US. Such bilateral agreements also provide a cushion against the tariffs pain inflicted by US President Donald Trump. UK-India Trade by Commodity and Services The trade pact might kick in after a year, DBS Bank Ltd. Economist Radhika Rao wrote in a May 7 note. Bilateral commerce is expected to nearly double in a few years from $21 billion in the year ended March 2024, she wrote. As exporters and companies await the fine print of the deal, here's a quick list of probable winners and losers: Automobiles While the reduced tariffs — from 110 per cent to 10 per cent — will start with fossil fuels-fed cars, these will eventually be extended to the electric and hybrid vehicles over a 10-year timeline, according to information on the UK government website. The UK will also offer Indian carmakers the opportunity to export these technologies to that country, with similar riders. Beneficiaries may include JLR and other luxury brands with factories in the UK such as Bentley, Aston Martin, Vauxhall and Mini. Domestic carmakers like Mahindra & Mahindra Ltd. and Maruti Suzuki India Ltd. , which have invested in EV, may feel the pinch. It is unclear how these concessions will be structured and what price threshold will apply to a quota of cars that can be imported with these lower tariffs. While this is the first time India has taken steps to liberalise its nascent EV market, it has stopped short of handing UK carmakers an immediate low-cost entry, giving local firms some runway to bulk up. Liquor Makers Whiskey and gin tariffs will be halved to 75 per cent before settling at 40 per cent by the 10th year of the deal, according to the pact's terms. In 2022, India imported over £200 million ($266 million) worth of whiskey from the UK, paying duty at the rate of 150 per cent. Diageo, which makes Johnnie Walker whiskey and Tanqueray gin, may gain from this. Shares of its Indian unit, United Spirits Ltd., jumped as much as 2.8 per cent on Wednesday. The treaty will enable 'improved accessibility and choice of scotch for the Indian consumers' in the world's largest whiskey market, Praveen Someshwar, managing director at Diageo India, said in a statement. Elara Capital's Karan Taurani said the duty reduction will see prices of these drinks falling by 15%-20%, and will make premium spirits more accessible to Indian buyers. The duty cuts could have a small negative impact on homegrown liquor brands such as Royal Ranthambore, marketed by Radico Khaitan Ltd. , according to Taurani. Its shares slipped 3.6%. 'Domestic players focused on upper prestige and above may see short-term aberration in growth,' he said. Textile Makers Clothes are the second-largest export to the UK from India, with the South Asian nation shipping £900 million worth of goods in 2024. The removal of tariffs will enhance India's competitiveness against countries like Bangladesh and Vietnam, according to the Federation of Indian Export Organisations. Apparel retailers such as Marks and Spencers and Primark are expected to shift sourcing to India from Bangladesh after this deal, according to P Senthilkumar, a partner at Vector Consulting. Gokaldas Exports Ltd. and Welspun Living Ltd. rose 12 per cent on Wednesday while Indo Count Industries Ltd. advanced 11.3%. Medical Devices Indian exporters would be able to sell medical devices at a lower cost in the UK. This includes cardiac, orthopedic implants, syringes, blades, blood bags and glucometers as well as its wearables to the UK at a lower cost, Rajiv Chhibber, joint coordinator at the Association of Indian Manufacturers of Medical Devices, told Bloomberg News. UK-based companies would be able to increase supply of electronic goods such as Magnetic Resonance Imaging machines, slicers, cancer therapeutics to India, he added. Financial Services 'The deal will secure UK companies' ability to deliver financial services to clients in India,' the UK government said on its website. India and the UK agreed to cooperate and innovate on financial technology services, particularly developing an efficient environment for cross-border payments. That is expected to ease international payments for tourists, students, businesses and investors.
