India-US Trade Deal Set to Transform Textile Exports

The India–US Trade Agreement is seen as a major catalyst for bilateral textile trade, expected to boost employment, attract US investments, and strengthen India’s textile ecosystem.

The deal opens access to the $118 billion US global import market for textiles, apparel, and made-ups; the United States is already India’s largest export destination with $10.5 billion in textile exports.

India’s exports to the US comprise ~70% apparel and ~15% made-ups, making this agreement a significant growth opportunity for the sector.

The 18% reciprocal tariff on Indian textile products improves competitiveness versus Bangladesh (20%), China (30%), Pakistan (19%), and Vietnam (20%), likely reshaping global sourcing decisions.

The agreement also supports cost competitiveness by enabling sourcing of intermediates from the US, encouraging value-added textile manufacturing, diversified production, and exports.