The interim trade deal between India and the United States has delivered a significant boost and renewed optimism to India’s textile and seafood export sectors. After enduring months of declining orders and substantial tariff pressures, these industries are now experiencing a surge in price competitiveness and demand. The agreement has sparked a notable rally in textile export stocks and is reigniting export inquiries from crucial overseas markets.
For the textile and apparel sector, this deal is a pivotal moment for competitiveness. Indian exporters now face an 18% tariff in the US, providing a favorable edge over the 20% imposed on rivals like Bangladesh and Vietnam. This differential is expected to help India reclaim market share lost during a challenging period, when textile exports to the US plummeted over 31% year-on-year in November 2025, causing production cutbacks and job losses. Following the improved outlook, shares of major textile exporters such as Gokaldas Exports, Raymond, and Welspun surged by up to 8% in intraday trade. This reflects strong investor confidence in a rapid recovery of export volumes and profit margins. Industry executives anticipate that US buyers, who previously diverted orders, will now reconsider India as a primary sourcing destination for value-added apparel and home textiles.
The seafood sector, under intense pressure for the past year, is also showing early signs of recovery. Exporters report a resurgence of inquiries after a two-month lull, due to relief from cumulative tariffs that had peaked above 58%. The US market, critical for about 35% of India’s seafood exports, saw a sharp decline in shipments after August, leading to an estimated 70% business loss. Exporters view the deal as essential “breathing space,” expecting it to aid the industry in recovering lost ground through enhanced price competitiveness. A “double win” is also celebrated, as India’s free trade agreement with the European Union has brought duties on Indian seafood to zero, further expanding market access. This dual tariff relief is projected to boost capacity utilization, cash flows, and overall confidence across the marine products value chain, particularly benefiting small and mid-sized exporters.
Commerce and Industry Minister Piyush Goyal affirmed that these trade developments are instrumental for India to achieve its ambitious target of doubling farm and marine product exports to $100 billion in the coming years. This underscores the government’s strategy of using trade agreements to drive export-led economic growth. Both markets and exporters perceive the interim India-US trade deal as a powerful near-term positive shock, alleviating global trade frictions and acting as a crucial catalyst for the recovery of exports, earnings, and employment.