Gokaldas Exports, Welspun Living, KPR Mill, and other textile stocks jumped up to 5% after the Finance Minister Nirmala Sitharaman proposed setting up mega textile parks with focus on value addition to technical textiles.

Finance Minister Nirmala Sitharaman proposed an integrated programme with key components for the labour-intensive textile sector

Sitharaman emphasised that the first pillar of her plan, the National Fibre Scheme, aims to “achieve self-reliance in natural fibres like silk, wool, and jute, as well as man-made and new industrial-age fibres.”

The second is the Textile Expansion and Employment Scheme, which seeks to modernise traditional clusters by providing capital support for machinery, technology upgrades, and common testing and certification centres.

The third component is the National Handloom and Handicraft Programme (NHHP), designed to integrate and strengthen existing schemes while ensuring targeted support for weavers and artisans.

“The integrated plan for labour-intensive textiles focuses on employment generation, value-added manufacturing, and global competitiveness, especially in garments, man-made fibres, and technical textiles. This could improve capacity utilisation, exports, and margins across the textile value chain,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

According to her, the likely impacted textile stocks by this announcement are Vardhman Textiles, Welspun Living, KPR Mill, Arvind Ltd, and Trident.