Textile Trade Deal Opens U.S. Market to India, Boosting Exports
Textile Trade Deal Opens U.S. Market to India, Boosting Exports
A new India-U.S. trade pact slashes tariffs on textiles, unlocking a $118 billion market and moving India toward a $100 billion export goal by 2030.
India and the United States have agreed to an interim framework that will cut reciprocal tariffs on textiles and related products, opening a sprawling $118 billion market for imports and exports. The U.S. remains India's largest export destination, with shipments totaling about $10.5 billion, and the move is seen as a major lever in reaching India's target of $100 billion in exports by 2030.
Industry leaders welcomed the development. Ashwin Chandran, chairman of the Confederation of Indian Textile Industry, said Indian textiles and apparel can again compete effectively in the U.S. market. A. Sakthivel, chairman of the Apparel Export Promotion Council (AEPC), noted the agreement also addresses non-tariff barriers and reduces compliance burdens, speeding goods to the U.S.
The move comes as India's textile and apparel exports have faced a dip, with U.S. imports from India dropping 31.4% in November 2025 compared to November 2024, underscoring the potential impact of tariff relief on cotton-based shipments.
Analysts say the policy could help cushion cotton-based export volumes, though cotton supply and price fluctuations remain a factor. The broader context includes ongoing talks on electronics and IP, with an interim framework signaling progress toward a full bilateral pact, including tariff cuts, enhanced market access, and streamlined procedures.
