4 Stocks to Watch as US Proposes Up to 12.5% tariff on India Over Forced Labour

#2 Gokaldas Exports

Next on our list is the stock of Gokaldas Exports.

The company is one of India's largest apparel manufacturers and exporters. Founded in 1979, the company designs, manufactures, and exports garments for men, women, and children to leading global fashion brands and retailers across more than 50 countries.

Its product portfolio includes fashionwear, outerwear, casualwear, sportswear, jackets, shirts, tops, and trousers.

How US Proposal of up to 12.5% tariff Could Impact Gokaldas Exports

• The US is one of the company's biggest export markets.

• A 12.5% tariff would make garments sourced from India more expensive for American buyers. This could result in sourcing from other countries.

• Retailers may negotiate lower prices or shift some orders to countries facing lower tariffs.

• Lower order volumes or thinner margins could affect earnings.

That said, Gokaldas Exports is a big beneficiary of the global shift in apparel sourcing away from China. The company enjoys strong customer relationships, large manufacturing scale and significant growth opportunities through capacity expansion and geographic diversification.

This could hold the company in good stead.

#3 Bharat Forge

Next on our list is the stock of Bharat Forge.

Bharat Forge is a Pune-based Indian multinational company, that provides high performance, innovative safety critical components and solutions for several sectors including automotive, power, oil and gas, construction & mining, rail, marine, defence and aerospace.

The company has a global manufacturing footprint with presence across five countries.

How US Proposal of up to 12.5% Tariff Could Impact Bharat Forge

• Exports automotive and industrial components to North America.

• Higher tariffs could increase costs for US customers purchasing Indian-made components.

• Some customers might diversify sourcing, potentially affecting future order growth.

That said, Bharat Forge has been gradually diversifying over the years. The company is no longer just an auto-components company; its defence business has emerged as a major growth driver.

Through its subsidiaries, the company manufactures artillery guns, armoured vehicles, ammunition systems, and small arms. It recently secured a large order for 184 ATAGS artillery guns from the Indian Ministry of Defence and has also won major contracts for CQB carbines.

Agneyastra Energetics Limited, a wholly owned subsidiary of Kalyani Strategic Systems Limited (KSSL)-the defence business of Bharat Forge Limited- on 15 May 2026 announced the groundbreaking of its strategic defence manufacturing facility in Andhra Pradesh.

This should help the company in the next few years to gradually improve the product mix beyond auto products.

#4 KPR Mill

KPR Mill is one of India's leading vertically integrated textile companies.

The company operates across the entire value chain-from cotton yarn and knitted fabric to readymade garments-giving it strong control over costs and quality. It also has businesses in sugar, ethanol, and power generation.

How US Proposal of up to 12.5% tariff Could Impact KPR Mill

• Exports yarn, fabrics, and garments to global markets, including the US.

• Tariffs could reduce the competitiveness of Indian textile products.

• Companies may source from other countries in Asia.

The company like some of the other companies listed here has diversified over the years, providing some hedge against risks.

It also has businesses in sugar, ethanol, and power generation, which diversify earnings.

Another advantage KPR Mill has is that it vertically integrated textile company. It operates across the entire value chain-from cotton yarn and knitted fabric to readymade garments-giving it strong control over costs and quality.

This enables it to better manage tariffs, should the same be implemented.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...