ndia is poised to gain substantial trade benefits from the United States, particularly for its labour-intensive textile and apparel sector, Union Commerce and Industry Minister Piyush Goyal announced on Friday. Under a proposed trade arrangement, Indian textile exports are expected to receive a “0% tariff” status in the US market.
The proposed duty-free access would place India on par with benefits earlier extended by Washington to Bangladesh. According to the minister, the development would provide a major boost to Indian exporters by enabling them to compete more effectively with regional and global rivals.
Goyal described the proposed agreement as part of a broader and “historic” trade deal between India and the United States, aimed at fostering shared prosperity and strengthening bilateral economic ties. He emphasised that the move would significantly benefit labour-intensive industries, including textiles and garments, which employ millions across the country.
Highlighting India’s improved trade positioning, the minister said the new framework places India in a far more favourable spot compared to neighbouring competitors. While other economies face higher tariff barriers—such as China at 37%, Bangladesh at 20%, and Pakistan at 19%—India’s reciprocal tariffs are now among the lowest in the region.
The agreement is expected to help India’s garment exports to the US rise from the current level of around $6 billion to an estimated $8–10 billion annually. Officials believe this growth could unlock new opportunities for MSMEs, farmers, and skilled workers.
The proposed deal follows prolonged negotiations and is seen as a milestone in India–US relations, aligning with the government’s broader vision of strengthening domestic manufacturing and exports under the Make in India initiative.
