India Likely To Receive Zero-Tariff Access For Textiles From The US
India could gain zero-duty access for textile exports to the US, potentially boosting competitiveness and manufacturing jobs.
India is set to receive a zero-tariff market access deal for textiles from the United States, similar to the preferential terms currently enjoyed by Bangladesh, senior government sources indicated on Thursday. The move is being projected as a potential breakthrough for India’s labour-intensive textile and apparel sector, which has long sought parity with competing exporting nations.
Officials said the proposed arrangement would allow Indian textile and garment exports to enter the U.S. market at 0% duty, significantly improving price competitiveness against rivals in South and Southeast Asia. The development is being discussed as part of a broader trade understanding between India and the United States, aimed at strengthening economic ties and rebalancing supply chains.
Industry stakeholders believe such a deal could deliver a major boost to India’s apparel exports, which face higher tariffs compared to Bangladesh, a key beneficiary of preferential access due to its least-developed country status. Exporters have long argued that tariff disadvantages erode India’s ability to compete despite its scale, manufacturing capacity and skilled workforce.
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Government officials cautioned that discussions are still underway and that final details, including product coverage and compliance requirements, are yet to be firmed up. However, they acknowledged that textiles are emerging as a priority sector in negotiations, given their role in employment generation and export earnings. The focus, officials said, is on securing terms that protect domestic interests while expanding market access.
The potential zero-tariff access is also seen as aligning with Washington’s effort to diversify sourcing away from a heavy reliance on a single country. India has positioned itself as a reliable alternative manufacturing hub, backed by policy incentives and investments in textile parks, man-made fibre production and integrated value chains.
If finalised, the deal could reshape India’s textile export trajectory and narrow the gap with competitors like Bangladesh in the U.S. market. Analysts say the agreement would not only help exporters increase volumes but also encourage fresh investments in the sector, reinforcing textiles as a key pillar of India’s trade engagement with the United States.
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