New Delhi, February 7: A trade deal with the United States is set to help India achieve its ambitious goal of $100 billion in textile exports by 2030. This announcement was made by the government on Saturday.
The Ministry of Textiles stated that the deal is expected to provide significant momentum, with the US contributing over 20 percent towards the $100 billion export target.
Welcoming this historic agreement between India and the US, the ministry described it as a major catalyst for strengthening textile trade relations between the two countries.
The textile industry expressed optimism that this agreement will serve as a transformative economic opportunity for the sector.
For textile exports, this deal opens doors to the $118 billion US global import market for textiles, apparel, and ready-made garments. The US is India’s largest export destination, with approximately $10.5 billion in exports, of which around 70 percent are apparel and 15 percent are ready-made garments. This presents a significant opportunity.
The mutual tariff of 18 percent on all textile products, including apparel and ready-made garments, will not only alleviate current challenges faced by Indian exporters but also position them favorably against competitors like Bangladesh (20 percent), China (30 percent), Pakistan (19 percent), and Vietnam (20 percent), who face higher tariffs.
The ministry noted, “This will change market dynamics as major buyers reconsider their purchasing strategies due to this agreement.”
The deal will also enable the industry to become cost-competitive and reduce risks by sourcing intermediate materials from the US for the textile sector.
This will facilitate the production of value-added textiles in the country and diversify our production and exports. The ministry added that the agreement will create additional jobs and encourage investment from American companies.
The framework of the US trade agreement marks a historic milestone for India’s textile and apparel sector.