India-US Trade Agreement Boosts Textile Exports

India and the United States have reached a framework for the first phase of a bilateral trade agreement, aiming to reduce import duties and boost two-way trade. This landmark deal is particularly significant for India's textile industry, as it opens up the USD 118 billion US global imports market for textiles, apparel, and made-ups. The agreement will remove the 18% reciprocal tariffs on Indian textile products, placing them in a more favorable position compared to competitors like Bangladesh, China, Pakistan, and Vietnam, who face higher tariffs. In return, India will eliminate or reduce import duties on various US industrial goods and agricultural products, including dried distillers' grains, tree nuts, and wine. The India===Ministry of Textiles and industry representatives, such as the Confederation of Indian Textile Industry, have hailed the agreement as a major catalyst for strengthening bilateral trade relations and helping India achieve its target of USD 100 billion in textile exports by 2030. The deal is also expected to improve cost-competitiveness for Indian manufacturers and diversify sourcing risks by allowing them to procure intermediates from the US.