Morning Edition · Sunday, August 2, 2026Published at 1:33 AM EDT · New York

Brokerage Sees Indian Textile Exporters Gaining as Sourcing Shifts From China

Nuvama began coverage of KPR Mill and two other textile firms with buy ratings, projecting potential gains of up to 35 percent as global supply chains realign.

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Brokerage Sees Indian Textile Exporters Gaining as Sourcing Shifts From China

Nuvama Institutional Equities has initiated coverage on KPR Mill, Indo Count Industries, and Sanathan Textiles with buy ratings, citing a global shift in textile sourcing away from China and forecasting gains of as much as 35 percent for the shares. The brokerage argues that Indian exporters are positioned to take on orders as buyers diversify their supply chains.

The argument is based on a structural change rather than a short-term trade. As tariffs, labor costs, and geopolitical risk push Western buyers to reduce their dependence on Chinese manufacturing, countries including India, Vietnam, and Bangladesh compete for the redirected orders. Textiles, a labor-intensive industry where India has scale and cost advantages, is one of the clearest early beneficiaries.

This is a brokerage's forecast, and the projected gain assumes the realignment continues and Indian firms capture their share of it. The broader signal is that the diversification of global manufacturing away from a single Chinese center is now shaping how investors value specific export sectors.

Part of a tracked trend

Sourcing Diversifies Away From China

Manufacturing sourcing steadily diversifies away from China toward India and Southeast Asia under tariff and geopolitical pressure, redistributing export share and reshaping how investors value producer economies.

What this means

The gradual redirection of manufacturing orders away from China directs export revenue and investment toward India and Southeast Asia, and equity analysts are beginning to price that shift into specific sectors such as textiles. The mechanism is supply-chain diversification driven by tariffs and geopolitical risk, which benefits low-cost producers with spare capacity and pressures Chinese exporters that already face weak domestic demand. Indian textile firms and their investors gain if the orders actually arrive, though the forecast depends on execution and sustained buyer diversification.

What to watch

Indian textile export volumes and order books in coming quarters, the hard evidence of whether orders are actually shifting.
United States and European Union tariff policy toward Chinese goods, the main force pushing buyers to diversify.
Whether Vietnam and Bangladesh capture the same orders, which would reduce the gains analysts project for Indian firms.

Observations to monitor, not financial advice.

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Source: Economic Times