The proposed India–U.S. trade agreement is expected to open up the United States’ $118 billion global imports market for textiles, apparel, and made-ups, creating a major opportunity for India’s textile sector, the government said on Saturday.
The U.S. remains India’s largest export destination for textiles, and the revised tariff structure is expected to strengthen India’s position within global textile supply chains, PTI reported.
According to the Ministry of Textiles, the new reciprocal tariff of 18% on Indian textile products, including apparel and made-ups, removes a long-standing disadvantage faced by Indian exporters.
The revised rate places India in a more competitive position compared with key rivals such as Bangladesh at 20%, China at 30%, Pakistan at 19%, and Vietnam at 20%. The ministry said the change is likely to influence sourcing decisions by global buyers and could lead to a realignment of procurement strategies.
India and the United States have announced a framework for the first phase of a bilateral trade agreement aimed at reducing import duties on selected goods to boost two-way trade.
The framework also reaffirms commitment to broader negotiations under the U.S.–India Bilateral Trade Agreement, launched following discussions between U.S. President Donald Trump and Indian Prime Minister Narendra Modi on February 13, 2025, according to a joint statement.
Under the proposed framework, the U.S. will reduce tariffs on Indian goods to 18% from 50%. In return, India will eliminate or lower duties on a wide range of U.S. industrial products and several agricultural and food items, including dried distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits.
The textiles ministry said the agreement would act as a catalyst for deepening trade ties between the two countries. With the U.S. accounting for around $10.5 billion of India’s textile exports, roughly 70% in apparel and 15% in made-ups, access to the wider U.S. import market represents a major opportunity. ‘
The ministry said the deal is expected to play a pivotal role in helping India reach its target of $100 billion in textile exports by 2030, with the U.S. projected to contribute more than one-fifth of that goal.
The government added that the agreement would also enhance cost competitiveness for Indian exporters and support diversification of supply chains by enabling the sourcing of key textile intermediates from the United States.
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