Textile stocks experienced a significant surge in Monday’s trading session following the Ministry of Finance’s announcement to suspend the 11 percent import duty on cotton from June 1 to October 31. This decision provides substantial relief to the textile sector, which has been grappling with high raw material costs.
Indo Count Industries shares rose by 7 percent to close at ₹334.75, reaching a 52-week high of ₹353.90 on the National Stock Exchange (NSE). Vardhman Textiles saw a 4 percent increase to ₹599.60 after briefly spiking nearly 8 percent to ₹622 during the session.
Gokaldas Exports finished at ₹700.25 after hitting a high of ₹734.80, while Welspun Living gained 5 percent, closing at ₹145.13. Arvind Ltd shares were up by 1 percent, ending at ₹479.15 and achieving a new 52-week high of ₹502.80.
Other textile stocks, including Ambika Cotton Mills, Page Industries, Raymond Lifestyle, and Kilitch Garments, also experienced strong buying interest during the day.
This market rally followed a notification issued by the Ministry of Finance on May 30, which stated that the 11 percent import duty on cotton would be suspended for the specified period. The temporary exemption is anticipated to lower input costs throughout the textile and apparel sectors, offering targeted relief to manufacturers and consumers, while also considering the needs of domestic cotton farmers.
The Ministry emphasized that this measure is expected to positively impact the domestic textile industry, particularly benefiting small and medium enterprises by ensuring a better supply of cotton in the market.
Market analysts noted that the suspension could enhance the profitability of spinning mills, garment exporters, and home textile manufacturers by securing access to cheaper raw materials during the peak procurement season. Additionally, there is growing optimism about enhancing competitiveness for Indian textile exporters in global markets, especially amid demand recovery in major regions such as the US and Europe.
Industry bodies have welcomed the decision, asserting that it will support the sector during a critical period. The Confederation of Indian Textile Industry remarked that the temporary repeal of the cotton import duty would bolster India’s textile and apparel sector, which is predominantly comprised of micro, small, and medium enterprises (MSMEs), in improving its competitiveness globally amidst prevailing challenges. The organization also underscored that this move aligns with India’s goal of achieving textile and apparel exports valued at $100 billion by 2030.
Published on June 1, 2026.
