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US Trade Deal to Propel India's $100 Billion Textile Export Goal by 2030

The India-US trade agreement is seen as a pivotal catalyst for India to achieve its target of $100 billion in textile exports by 2030. The deal opens access to the $118 billion US import market for textiles and apparel, where India already exports about $10.5 billion. It eliminates an 18% reciprocal tariff, making Indian exporters more competitive than key rivals like China, Bangladesh, and Vietnam. The ministry states this will alter global sourcing dynamics, encourage US investment, and generate additional employment in India's textile sector.

Key Points: US Trade Deal Key to India's $100B Textile Export Target

  • Opens $118B US import market
  • Removes 18% reciprocal tariffs on textiles
  • Boosts competitiveness vs. China, Bangladesh
  • Aims for $100B exports by 2030
2 min read

US deal to play pivotal role in India achieving $100 billion textiles exports in 2030

India's landmark US trade agreement opens a $118B market, cuts tariffs, and is pivotal for achieving $100 billion in textile exports by 2030.

"This would alter the market dynamics as large buyers would surely relook at their sourcing - Ministry of Textiles"

New Delhi, Feb 7

The India-US trade agreement is expected to play a pivotal role in India achieving its intended target of $100 billion textiles exports in 2030, the government said on Saturday.

The deal is expected to provide the requisite momentum, with the US to contribute to more than one-fifth of this target, according to Ministry of Textiles.

The ministry welcomed the landmark agreement between India and the US as a major catalyst enhancing the textile trade relations between the nations.

The textile industry expressed the hope that this is a major economic game changer for the sector.

For textiles exports, the deal opens up a $118 billion US global imports market of textiles, apparels and made ups. With the US being India's largest export destination of around $10.5 billion exports, comprising around 70 per cent apparel and 15 per cent made ups, this is a major opportunity.

The 18 per cent reciprocal tariffs on all the textiles products including apparel and made-ups will not only remove the disadvantage that Indian exporters had, but would place them in a better position than most competitors like Bangladesh (20 per cent), China (30 per cent), Pakistan (19 per cent) and Vietnam (20 per cent) who have higher reciprocal tariffs.

"This would alter the market dynamics as large buyers would surely relook at their sourcing in the light of this agreement," said the ministry.

The agreement would also enable the industry to be cost competitive and diversify their risks by sourcing intermediates for the textiles sector from the US.

This would facilitate manufacturing of value-added textiles in the country and diversify our production and exports. The deal would generate additional employment and encourage investments by US entities, said the ministry.

The US trade agreement framework represents a historic milestone for India's textiles and apparel sector.

- IANS

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Reader Comments

P
Priya S
Finally some good news for our exporters! The tariff reduction is crucial. We've been losing ground to Bangladesh and Vietnam for years. This levels the playing field. Hope the benefits reach the small and medium enterprises too.
R
Rohit P
$100 billion by 2030 sounds ambitious but achievable with this deal. The key will be upgrading our manufacturing to meet US quality standards consistently. We need more focus on skill development now.
S
Sarah B
As someone who follows trade, this is a strategically smart move by India. Diversifying sourcing for intermediates from the US also reduces dependency on China. A win-win partnership.
M
Meera T
I hope this leads to better wages and working conditions for the artisans and workers. Growth should be inclusive. The government must ensure labor reforms and social security go hand-in-hand with this export push.
V
Vikram M
Beating China on tariff advantage is a big deal! 🎯 This could really shift global supply chains. Our textile hubs in Tiruppur and Ludhiana must be celebrating. Time to invest in scaling up production.

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