India may get '0% tariff' deal from US on textiles

Union Commerce and Industry Minister Piyush Goyal has announced that India is set to receive significant trade benefits from the United States, particularly for its textile sector. 

Under a new trade arrangement, India’s textile exports are expected to enjoy a "0% tariff" status, aligning it with the benefits previously extended by Washington to Bangladesh.

The Union Minister highlighted that this development will be a major boost for India's labour-intensive industries. 

By securing a duty-free deal, Indian textile and apparel exporters can compete more effectively on a global stage. 

Goyal noted that this arrangement is part of a broader "historic" trade deal aimed at fostering shared prosperity between the two nations.

"India is likely to receive textile-related trade benefits, similar to those extended to Bangladesh under its trade arrangement with the United States," Goyal stated.

He further emphasised the strategic importance of the move for Indian manufacturers.

Best Deal in the Neighbourhood 

Goyal described the trade pact as the "best in the neighbourhood," pointing out that India's reciprocal tariffs are now among the lowest for competing economies. 

While other nations in the region face higher hurdles, with China paying 37%, Bangladesh at 20%, and Pakistan at 19%, the new framework positions India more favourably.

Also Read: India-US trade deal opens new export avenues for Odisha’s textiles

The agreement is projected to help garment exports to the US rise from the current $6 billion to an estimated $8–10 billion annually.

This deal follows extensive negotiations and is seen as a landmark step in India-US relations, intended to unlock new opportunities for MSMEs, farmers, and skilled workers under the 'Make in India' initiative.