Latest news with #AIDC
&w=3840&q=100)
Business Standard
5 minutes ago
- Business
- Business Standard
Vardhman Textiles, Indo Count, Welspun Living rally up to 9%; here's why
Textile companies share price performance Shares of textile companies were in focus and rallied up to 9 per cent on the BSE in Tuesday's intra-day trade after the finance ministry on Monday removed the 11 per cent duty on raw cotton imports for a period of 42 days till September 30, 2025. Among individual stocks, Vardhman Textiles (₹447.05) and Nahar Spinning (₹225.15) surged 9 per cent each. Kitex Garments, Welspun Living, Indo Rama Synthetics (India), Nitin Spinners, Indo Count Industries, Siyaram Silk Mills and Gokaldas Exports were up in the range of 3 per cent - 8 per cent on the BSE in intra-day trade. In comparison, the BSE Sensex was up 0.14 per cent at 81,397 at 09:37 AM. However, in the past one month, textile stocks have underperformed the market by falling up to 21 per cent after the US President Donald Trump announced up to 25 per cent tariff on imports from India, and an additional 25 per cent if India continued with its energy and defence ties with Russia. Meanwhile, the BSE Sensex was down 1 per cent in the past one month. Track Stock Market LIVE Updates Why are textile stocks in focus today? The government has scrapped import duty as well the Agriculture Infrastructure and Development Cess (AIDC) on cotton effective from August 19, 2025 till September 30, 2025 to mitigate from pressure of a large tariff of 50 per cent imposed by the US government on Indian exports. Custom duty on imports of cotton currently stands at 11 per cent. The exemption will benefit the textile chain - yarn, fabric, garments and made-ups - and provide relief to the textile industry and consumers. The removal of import duty on cotton was a long-pending demand of industry bodies such as the Confederation of Indian Textile Industry (CITI). This move is crucial in making the industry competitive, as it requires high-quality, contamination-free cotton to meet global quality compliance standards for exports. Removal of duty on raw cotton is expected to have a salutary effect on cotton prices in India, Business Standard reported. ICICI Securities believe this is the right move taken by the government to safeguard the interest of the textile industry. There is a possibility that it will be extended till the government signs an appropriate deal with the US in the near future. However, according to Gokaldas Exports, the recently revised reciprocal tariffs imposed by the US on India is expected to pose a challenge in the second half of this financial year as most of the company's order bookings for the second quarter are already closed. Brands are cautious and want to know the tariff impact on various geographies for committing their orders. India has a large export business of $16 million per annum. It's impossible for any brand to find alternative solutions for this volume elsewhere in the short run, the garments & apparels company said in its Q1FY26 earnings conference call on August 13. A clarity on the tariff imposed on India over the next few months will allow this churn to settle. In the meanwhile, a higher tariff from August across all regions would impact business volumes in the short run. As most of the countries which export apparel, barring China and India, tariffs are at about 20 per cent. So that would have a potential inflationary impact in the market and could impact business volumes going forward, Gokaldas Exports said.
Business Upturn
9 minutes ago
- Business
- Business Upturn
Arvind shares surge over 2% as Govt removes duty on cotton imports till Sept 30
By Aditya Bhagchandani Published on August 19, 2025, 09:27 IST Shares of Arvind Ltd climbed over 2.5% to ₹300.80 on Tuesday, August 19, after the government temporarily removed the 11% customs duty on raw cotton imports, a move aimed at easing input costs for the textile and garment industry. The Finance Ministry, through a notification, exempted cotton imports from both basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) from August 19 to September 30. The exemption provides a short-term relief window of 42 days, which industry bodies say will help align domestic cotton prices with international levels. The Confederation of Indian Textile Industry (CITI) welcomed the measure, stating it had been a long-pending demand. 'CITI has long been requesting that the import duty on cotton be removed to help domestic cotton prices align with international prices. We, therefore, greatly welcome this measure, even though the relief is only temporary,' said Chandrima Chatterjee, Secretary, CITI. The move comes at a time when Indian textile exporters are grappling with steep 50% tariffs imposed by the US, far higher than the 20% levied on Bangladesh and 30% on China. Exporters fear revenue losses and shrinking market share in the crucial American market, which remains India's largest destination for textile and apparel shipments. Arvind Ltd, a leading textile manufacturer with strong exposure to fabrics and garments, is expected to benefit from the exemption, along with peers like Vardhman Textiles, Welspun, Trident and Raymond. Market analysts believe the relief could ease cost pressures in the near term, boost margins, and support export competitiveness, even if shipments don't see a significant uptick during the exemption period. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
9 minutes ago
- Business
- Business Upturn
Welspun Living shares rise 5% as Govt removes duty on cotton imports till Sept 30
By Aditya Bhagchandani Published on August 19, 2025, 09:29 IST Shares of Welspun Living Ltd surged over 5% to ₹123.13 in Monday's trade after the government announced a temporary exemption on the 11% customs duty on raw cotton imports till September 30, providing much-needed relief to the textile and garment industry. The Finance Ministry's notification, issued through the Central Board of Indirect Taxes and Customs (CBIC), removed both the basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) on cotton imports for a 42-day window starting August 19. The move is expected to ease cost pressures across the textile value chain, covering yarn, fabric, garments, and made-ups. Industry body Confederation of Indian Textile Industry (CITI) welcomed the decision, saying it will help Indian cotton prices align better with international benchmarks and improve export competitiveness. For companies like Welspun Living, a global home textiles leader with strong exposure to the US and Europe, the exemption comes as a timely measure. Exporters have been struggling under the burden of steep 50% US tariffs on Indian textile and apparel shipments, far higher than those levied on competitors like Bangladesh (20%) and Vietnam (20%). Analysts believe the duty removal, though temporary, could support margins for domestic players and provide a psychological boost to an industry battling squeezed demand and rising competition. However, exporters continue to urge the government to negotiate lower tariffs with the US to prevent further market share losses. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
9 minutes ago
- Business
- Business Upturn
Raymond shares gain over 4% as Govt exempts cotton imports from duty till Sept 30
By Aditya Bhagchandani Published on August 19, 2025, 09:28 IST Shares of Raymond Ltd surged over 4% to ₹637.75 in early trade on Monday after the government temporarily removed the 11% customs duty on raw cotton imports till September 30. The move comes as a major relief to the textile and garment sector, which has been grappling with rising input costs and stiff competition in global markets. The Finance Ministry, through the Central Board of Indirect Taxes and Customs (CBIC), notified the exemption, which covers both the basic customs duty and the Agriculture Infrastructure and Development Cess (AIDC) on raw cotton. The decision will remain in effect for 42 days, from August 19 to September 30. The step is expected to provide immediate cost relief across the textile value chain — from yarn and fabric producers to garment makers. Industry body CITI (Confederation of Indian Textile Industry) welcomed the move, noting it will help domestic cotton prices align with international benchmarks and improve export competitiveness. For Raymond, a diversified player in textiles, garments, and lifestyle products, the exemption is likely to support margins in the short term. Exporters like Raymond, who are dealing with the adverse impact of 50% tariffs on Indian textiles in the US, see this as a critical breather as they face rising pressure from global rivals such as Bangladesh, Vietnam, and China. Analysts say while the relief is temporary, it signals government intent to support the sector at a crucial time. Exporters continue to hope for an extension of the duty removal and stronger trade negotiations with the US to secure long-term competitiveness. Raymond's gains were in line with a broader rally in textile stocks, with peers such as Welspun Living, Vardhman Textiles, Arvind, and Trident also trading higher on the back of the duty exemption announcement. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Indian Express
6 hours ago
- Business
- Indian Express
Govt scraps duty on cotton imports till Sept 30 amid US tariffs pressure
The Finance Ministry on Monday notified the elimination of 11 per cent duty on cotton imports with immediate effect amid widespread fears of job losses in the textile sector due to steep 50 per cent US tariffs that would leave Indian products uncompetitive in the US market, India's largest export market. The government said that the elimination of import duty on cotton as well as Agriculture Infrastructure and Development Cess (AIDC) 'is necessary in the public interest' and that notification will come 'into force with effect from August 19, and shall remain in force up to and inclusive of September 30'. The textile sector is expected to be hardest hit sector due to steep US tariffs as US is a key market for Indian Ready-Made Garments (RMG) exports; its share in India's total garment exports in 2024 stood at 33 per cent, as per the Apparel Export Promotion Council (AEPC). 'CITI has long been requesting that the import duty on cotton be removed to help domestic cotton prices align with international prices. We, therefore, greatly welcome this measure taken by the authorities even though the relief is only available temporarily,' Confederation of Indian Textile Industry (CITI) secretary general Chandrima Chatterjee said. As per AEPC, top three most exported products by India to US: cotton T-shirts (9.71 per cent); women's or girls' dresses of cotton (6.52 per cent); babies' garments of cotton (5.46 per cent), etc. 'The top three exports of India to the US hold 10, 36, and 20 per cent share, respectively, in the US total imports of these products globally,' the export promotion council said. Notably, home textiles and carpets are also significant export-oriented sectors, with exports accounting for 70-75 per cent and 65-70 per cent of total sales, respectively, for these sectors. Of this, the US accounts for 60 per cent of exports for home textiles and 50 per cent of exports for carpets. US President Donald Trump had announced a 25 per cent reciprocal tariff on Indian goods on July 30. To add to the pain of labour-intensive sectors, Trump has announced another 25 per cent tariffs on India. The additional US tariffs are set to come into effect on August 27. Amid steep US tariffs, CITI had asked government's intervention for easier availability of raw materials, CITI pointed out that the US tariff rate for India has been set at 50 per cent and that the new US rate competing countries such as Bangladesh is 20 per cent, Indonesia and Cambodia are 19 per cent each and Vietnam is 20 per cent.
