Trade deal opens the U.S. textile market of $118 billion to India

The Union Ministry of Textiles said on Saturday that the agreement between India and the U.S. opens up a $118 billion U.S. global imports market of textiles, apparels, and made ups.

With the U.S. being India’s largest export destination of around $10.5 billion, the deal is expected to play a pivotal role in India achieving its intended target of $100 billion exports in 2030.

The 18% reciprocal tariffs on all the textile products, including apparel and madeups, will remove the disadvantage that Indian exporters had and also place them in a better position than Bangladesh (20%), China (30%), Pakistan (19%) and Vietnam (20%), the Ministry said.

The Confederation of Indian Textile Industry chairman Ashwin Chandran said India’s textile and apparel exports can once again compete effectively in the U.S. The U.S. imports of textiles and apparel from India dropped 31.4% in November 2025 compared to November 2024. The industry is awaiting more clarity on cotton as India’s exports of textiles and apparel are primarily driven by cotton.

A. Sakthivel, chairman of the AEPC, said the India- USA trade agreement will also address the issue of non-tariff barriers to trade and reduce the compliance burden and procedural delays leading to the faster movement of goods to the U.S. market.