A groundbreaking US-India trade agreement is poised to catapult India’s textile exports to $100 billion by 2030, with official statements confirming Saturday that the American market will account for over 20% of the gains. This development has sparked excitement across New Delhi’s policy circles.
Celebrating the ‘historic pact,’ the Textiles Ministry emphasized its role in fortifying trade links and injecting fresh impetus into the sector. Textile stakeholders foresee profound economic ripple effects from this strategic alignment.
Targeting the US’s massive $118 billion import pie for textiles, garments, and finished products, the deal builds on India’s current $10.5 billion footprint—where apparel claims 70% and made-ups 15%. It’s a portal to unprecedented scale.
The 18% mutual tariff structure delivers a knockout punch to competitors burdened by higher rates: 20% for Bangladesh and Vietnam, 19% for Pakistan, and a steep 30% for China. ‘Buyers will rethink procurement in light of this shift,’ ministry experts predict.
Strategic benefits extend to risk diversification via US-sourced inputs, sharpening cost edges and enabling high-value manufacturing at home. Job opportunities will multiply, and US capital inflows promise to modernize infrastructure.
This deal isn’t just trade—it’s a blueprint for India’s textile renaissance, cementing its stature on the world stage.