Paving New Pathways: India-US Trade Agreement Boosts Textile Industry

The landmark trade agreement between India and the United States is poised to invigorate India's textile industry by granting access to America's USD 118 billion global imports market. This agreement marks a crucial opportunity, according to the Indian government. As the top market for India's textile exports, the United States plays a pivotal role in this arena.

By slashing the 18 percent reciprocal tariffs on Indian textile products, including apparel and made-ups, Indian exporters will find themselves in a more advantageous position compared to counterparts from Bangladesh, China, Pakistan, and Vietnam, who face higher tariffs. This change in market dynamics is expected to prompt large buyers to reconsider sourcing strategies.

The announcement of a framework for the initial phase of the bilateral trade agreement underscores a mutual commitment to further negotiations. With reduced tariffs favoring both nations' imports, the pact will act as a catalyst for enhancing textile trade relations, setting India on a promising path toward its USD 100 billion export goal by 2030.