New Delhi: The Ministry of Textiles has welcomed the landmark agreement between India and the United States (US), calling it a major catalyst for strengthening bilateral textile trade and accelerating textiles exports from India.
The textile industry has expressed optimism that the agreement could become a significant economic game changer for the sector.
For textiles exports, the agreement opens access to a $118 billion US global import market covering textiles, apparel, and made-ups.
The United States remains India’s largest export destination, accounting for approximately $10.5 billion in exports, comprising nearly 70% apparel and 15% made-ups.
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The development is expected to play a pivotal role in helping India achieve its target of $100 billion in textile exports by 2030, with the US projected to contribute more than one-fifth of this goal.
Reciprocal Tariff Changes to Strengthen Textiles Exports
The introduction of 18% reciprocal tariffs on textile products, including apparel and made-ups, is expected to remove the competitive disadvantage faced by Indian exporters.
The new structure would position India more favorably compared to competitors such as Bangladesh (20%), China (30%), Pakistan (19%), and Vietnam (20%), which face higher reciprocal tariffs.
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This shift is expected to influence global sourcing strategies, as large international buyers may reconsider procurement decisions in light of the agreement.
The agreement is also expected to improve cost competitiveness for the industry by enabling sourcing of textile intermediates from the US.
This could support the manufacturing of value-added textiles in India while diversifying production and export capabilities.
Additionally, the deal is expected to generate employment opportunities and encourage investment from US entities in India’s textile sector.
