India intend US$100bn textile exports in 2030
The Ministry of Textiles welcomed the landmark agreement between India and the United States, saying it opens up US$118 billion global imports market of textiles, apparels and made ups as a major catalyst enhancing the textile trade relations between the nations.
The textile industry expressed the hope that this is a major economic game changer for the sector.
“For with the US being India’s largest export destination of around US$10.5 billion, comprising around 70% apparel and 15% made ups, this is a major opportunity. It is expected to play a pivotal role in India achieving its intended target of US$100 billion exports in 2030,” the Ministry of Textiles said on 7 Feb.
The deal is expected to provide the requisite momentum, with US to contribute to more than 1/5th of this target.
The 18% reciprocal tariffs on all the textiles products including apparel and made-ups will not only remove the disadvantage that Indian exporters had, but would place them in a better position than most competitors like Bangladesh (20%), China (30%), Pakistan (19%) and Vietnam (20%) who have higher reciprocal tariffs. This would alter the market dynamics as large buyers would surely relook at their sourcing in the light of this agreement.
The agreement would also enable the industry to be cost competitive and diversify their risks by sourcing intermediates for the textiles sector from the US. This would facilitate manufacturing of value-added textiles in the country and diversify our production and exports.
“The deal would generate additional employment and encourage investments by US entities,” the Ministry said.
Meanwhile, Prime Minister Narendra Modi has welcomed framework for Interim Trade Agreement between India and the United States, calls it a boost to ‘Make in India’ and Employment, and termed it great news for both nations.
The Prime Minister thanked President Donald Trump for his personal commitment to strengthening ties between the two countries and said the framework reflects the growing depth, trust and dynamism of the India-US partnership.
PM Modi also noted that the agreement will strengthen ‘Make in India’ by opening new opportunities for farmers, entrepreneurs, MSMEs, start-up innovators and fishermen, while generating large-scale employment for women and youth.
He further said that the framework will deepen investment and technology partnerships, strengthen resilient and trusted supply chains, and contribute to global growth. fiinews.com
