New Delhi, February 7 (IANS). The trade deal with the US will help India achieve the textile export target of $100 billion by 2030. This statement was given by the government on Saturday.
The Textile Ministry said that this deal is expected to provide the desired momentum, in which America’s contribution will be more than 20 percent in achieving the target of $100 billion textile exports.
The Ministry welcomed this historic agreement between India and the United States, calling it a major catalyst to strengthen textile trade relations between the two countries.
The textile industry expressed hope that this agreement would prove to be a major economic game-changer for the sector.
For textile exports, the agreement opens up a $118 billion US global import market of textiles, apparel and finished garments. The US is India’s largest export destination, with exports worth about $10.5 billion, including about 70 per cent of apparel and 15 per cent of ready-made garments. In such a situation, this is a big opportunity.
Reciprocal duty of 18 per cent on all textile products including apparel and ready-made garments will not only address the existing problem of Indian exporters but also put them in a better position than most of the competitors like Bangladesh (20 per cent), China (30 per cent), Pakistan (19 per cent) and Vietnam (20 per cent) which have higher reciprocal duties.
“This will change market dynamics as large buyers will reconsider their purchases due to this agreement,” the ministry said.
This agreement will also enable the industry to become cost competitive and reduce its risks by sourcing intermediate materials for the textile sector from the US.
This will facilitate the manufacturing of value added textiles in the country and will diversify our production and exports. The ministry said the agreement will create additional jobs and encourage investment by American companies.
The US trade agreement framework is a historic milestone for India’s textile and apparel sector.
–IANS
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