New Delhi is buzzing with optimism as a landmark trade agreement with the United States promises to supercharge India’s ambitious textile export target of $100 billion by 2030. Government officials announced on Saturday that this deal will provide the much-needed momentum, with the US market expected to contribute over 20% to achieving that milestone.
The Ministry of Textiles hailed the pact as a game-changer for bilateral trade ties. ‘This historic understanding will act as a major catalyst, strengthening the textile trade relations between India and the US,’ the ministry stated. Industry leaders echoed this sentiment, viewing it as a transformative force for the sector’s economic growth.
Unlocking access to America’s $118 billion global import market for textiles, apparel, and made-ups, the deal opens vast opportunities. Currently, India exports around $10.5 billion worth to the US, with garments making up 70% and made-ups 15%. This positions the agreement as a golden chance for expansion.
A key highlight is the mutual 18% tariff on all textile products, including apparel and made-ups. This rate undercuts competitors like Bangladesh (20%), China (30%), Pakistan (19%), and Vietnam (20%), giving Indian exporters a competitive edge. ‘Market dynamics will shift as major buyers reassess their sourcing strategies,’ the ministry noted.
Beyond tariffs, the deal empowers Indian firms to source intermediate materials from the US, reducing risks and enhancing cost competitiveness. It will foster value-added production domestically, diversify output, and spur job creation. Expect increased investments from American companies into India’s textile ecosystem.
This framework marks a historic milestone, propelling India’s textile and apparel sector toward global dominance while deepening economic bonds with the world’s largest economy.