New Delhi — The India–United States trade agreement is expected to play a decisive role in helping India achieve its ambitious target of $100 billion in textile exports by 2030, the government said on Saturday, describing the deal as a major boost to the country’s textile and apparel sector.
According to the Ministry of Textiles, the agreement is likely to provide critical momentum to export growth, with the United States projected to contribute more than one-fifth of the $100 billion target. The ministry welcomed the pact as a landmark step that significantly strengthens textile trade relations between the two countries.
Industry leaders echoed the government’s optimism, calling the agreement a potential economic game changer for one of India’s largest employment-generating sectors.
The deal opens access to the United States’ $118 billion global import market for textiles, apparel, and made-ups. The US is already India’s largest export destination in the sector, accounting for approximately $10.5 billion in exports, with apparel making up nearly 70 percent and made-ups about 15 percent of the total.
A key advantage of the agreement lies in the introduction of an 18 percent reciprocal tariff on textile products, including apparel and made-ups. The ministry said this removes the competitive disadvantage Indian exporters previously faced and places them in a stronger position compared to rivals such as Bangladesh, China, Pakistan, and Vietnam, which face higher reciprocal tariffs.
“This will alter market dynamics, as large buyers are likely to reassess their sourcing strategies in light of the agreement,” the ministry said.
Beyond export growth, the agreement is expected to help Indian manufacturers become more cost competitive by allowing them to source intermediate inputs from the US, thereby reducing supply chain risks. The ministry said this would encourage the production of value-added textiles, diversify exports, and strengthen India’s manufacturing base.
The deal is also expected to generate additional employment opportunities and attract fresh investments from US companies into India’s textile and apparel sector.
Calling the agreement framework a historic milestone, the ministry said the pact positions India to significantly expand its global footprint in textiles while supporting long-term growth, job creation, and competitiveness in the industry. (Source: IANS)
