New Delhi- The trade agreement between India and the United States is expected to significantly support India’s goal of achieving $100 billion in textile exports by 2030, according to the Ministry of Textiles.
The ministry stated that the agreement will provide strong momentum to the sector, with exports to the US projected to account for over 20 per cent of the overall target. The government described the pact as a landmark step that will strengthen textile trade ties between the two countries. Industry stakeholders have also welcomed the development, calling it a potential game changer for the sector.
The agreement opens access to the US textile import market, which is valued at approximately $118 billion, covering textiles, apparel, and made-up products. The US already stands as India’s largest export destination in this segment, with exports worth about $10.5 billion. Of this, nearly 70 per cent consists of apparel, while around 15 per cent comprises made-up products.
Under the agreement, an 18 per cent reciprocal tariff on textile products, including apparel and made-ups, is expected to eliminate India’s earlier disadvantage. It will also provide Indian exporters with a competitive edge over countries such as Bangladesh (20 per cent), China (30 per cent), Pakistan (19 per cent), and Vietnam (20 per cent), all of which face higher tariff rates.
The ministry noted that the new tariff structure is likely to reshape global sourcing patterns, encouraging major buyers to reconsider their procurement strategies in favour of India.
Additionally, the agreement is expected to improve cost competitiveness by allowing Indian manufacturers to source intermediate textile materials from the US. This will support the production of value-added textile goods, diversify manufacturing capabilities, and expand export opportunities.
The ministry further highlighted that the agreement will help generate employment opportunities and attract investments from US companies, marking it as a historic milestone for India’s textile and apparel industry.
With inputs from IANS