India Eyes $6 Billion Boost in Textile Exports with US Trade Deal

New Delhi, Mar 8 (KNN) India’s textile industry is optimistic about a potential zero-for-zero trade agreement with the United States, which could increase exports by USD 6 billion within three years.

The Confederation of Indian Textile Industries (CITI) believes such a deal could propel India’s textile and apparel exports to the US from USD 10.8 billion in FY24 to USD 16 billion.

The US remains a crucial market for Indian textiles, contributing 28.5 per cent of total exports between January and November 2024. While imports from China have declined at a compound annual growth rate (CAGR) of 9.4 per cent over the last five years, India’s exports to the US have grown at a CAGR of 9.1 per cent.

However, the biggest beneficiaries of US firms diversifying away from China have been Vietnam and Bangladesh, which enjoy preferential trade agreements with duty concessions. Vietnam’s share in US textile imports grew by 7.8 per cent, while Bangladesh saw a 3 per cent increase.

A zero-duty structure for Indian textile products would enhance competitiveness against Vietnam and Bangladesh, ensuring a level playing field.

The industry body also highlighted the importance of securing safeguards for sensitive products and a duty-free access mechanism for US cotton imports, which India relies on heavily.

If implemented, the trade deal could strengthen India’s position as a leading textile supplier, leveraging the shifting global trade dynamics in its favour.

(KNN Bureau)