Historic Textile Agreement Between India and the US: $100 Billion Export Target to be Achieved by 2030
New Delhi | Special Correspondent
The Ministry of Textiles has welcomed the historic trade agreement between India and the United States, calling it a 'game changer' for the Indian textile industry. This agreement will open the doors of the US's massive $118 billion global import market to Indian exporters.
Currently, the US is India's largest export destination, with India exporting approximately $10.5 billion worth of goods there. Experts believe that this agreement will be a milestone in achieving India's overall export target of $100 billion by 2030.
Increased Indian Dominance in the Market:
Under the agreement, a reciprocal duty of 18% has been set on all textile products. This rate is significantly lower than that of competitors such as China (30%), Bangladesh (20%), Vietnam (20%), and Pakistan (19%), which will encourage global buyers to turn to India.
New Opportunities for Employment and Investment:
This agreement will not only reduce production costs but also create additional employment opportunities in the country. Furthermore, there is a strong possibility of increased investment in India by American entities.
Certainly, here is a comparative table of key figures from the India-US textile agreement, which will make it even easier to understand the significance of this agreement:
Comparative Analysis: India's Position in Global Competition
| Country | Reciprocal Duty | Status (Compared to India) |
|---|---|---|
| India | 18% | Most Competitive |
| China | 30% | 12% More Expensive |
| Bangladesh | 20% | 2% More Expensive |
| Vietnam | 20% | 2% More Expensive |
| Pakistan | 19% | 1% More Expensive |
Key Points of the Agreement at a Glance:
* Huge Market: Direct access to the US's $118 billion global import market. * Export Target: Will help achieve the target of $100 billion by 2030.
* Current Situation: India currently exports $10.5 billion worth of goods to the US (70% of which are apparel).
* Economic Benefits: Reduced costs, diversification of production, and increased US investment.
* Employment: Will create a large number of new job opportunities in this sector.
