India-US trade pact opens $118-bn opportunity for textile exports
The US is India’s largest export destination, with textile and apparel exports of around $10.5 billion
The India-US trade agreement has opened America’s $118 billion global imports market of textiles, apparels and made-ups, a “major opportunity” for India’s textile industry, the government said.
The US is India’s largest export destination, with textile and apparel exports of around $10.5 billion, comprising nearly 70 per cent apparel and 15 per cent made-ups. The Textiles Ministry welcomed the landmark agreement as a major catalyst for strengthening bilateral textile trade ties.
Industry representatives termed the deal an economic game-changer and said it could play a pivotal role in helping India achieve its target of $100 billion in textile exports by 2030, with the US expected to contribute more than one-fifth of this goal.
A key advantage of the framework lies in the 18 per cent reciprocal tariff on all textile products, including apparel and made-ups. This would remove the disadvantage faced by Indian exporters and place them in a stronger position than competitors such as Bangladesh (20 per cent), China (30 per cent), Pakistan (19 per cent) and Vietnam (20 per cent), which face higher reciprocal tariffs.
The shift is expected to significantly alter sourcing strategies, prompting global buyers to re-evaluate supply chains in favour of India.
Meanwhile, the Confederation of Indian Textile Industry (CITI) estimated that India exported nearly $11 billion worth of textiles and apparel to the US in FY25. About 28-33 per cent of India’s total textile and clothing exports are destined for the US.
However, despite accounting for about 9.4 per cent of the US import market, India ranks as the fourth-largest supplier of textiles and clothing to the US. Nearly 33 per cent of India’s readymade garment exports, 48 per cent of home textile exports and 59 per cent of carpet exports are shipped to the US.
“The India-US interim trade framework is a timely and positive step towards the $500-billion trade ambition. By addressing tariffs, non-tariff barriers and supply chain resilience, it creates a more predictable and enabling environment for businesses and two-way investments,” said Chandrajit Banerjee, Director General, CII.
The agreement is also expected to improve cost competitiveness and help Indian manufacturers diversify sourcing of intermediates from the US, enabling greater production of value-added textiles. Industry bodies said the deal could generate additional employment and encourage investments by US entities.
