To mitigate the impact of potential reciprocal tariffs from the United States, India is pushing for increased textile exports through the proposed bilateral trade agreement (BTA).
Indian officials are prioritizing the BTA to shield key sectors, including textiles, agriculture, steel, and aluminum, from these potential tariffs. They aim to more than double bilateral trade with the US to $500 billion by 2030, a target agreed upon during Prime Minister Modi's recent US visit through this agreement.
India aims to negotiate the first phase of the BTA by fall 2025, with a focus on protecting its textile exports, which stood at $10.8 billion in 2024. The country is particularly concerned about significant tariffs differentials faced in the textile sector. It sees BTA as a crucial mechanism to protect Indian exports and ensure a mutually beneficial trade relationship with the US, India's top export destination.
