Confederation of Indian Textile Industry (CITI) projects, India’s T&A exports to the US will rise to $16 billion within the next three years if it pursues a ‘zero-for-zero’ trade agreement with the country. The proposed agreement would also help the industry eliminate all tariffs on textile and apparel products exchanged between the two nations.  

Currently, India is the third-largest T&A supplier to the US market, trailing only China and Vietnam. From January to November 2024, the US accounted for 28.5 per cent of India's total textile and apparel exports.

In FY 2024, India exported $10.8 billion worth of goods to the US, while imports from the US amounted to a mere $0.41 billion.  

While US textile imports from China have declined by 9.4 per cent CAGR over the past five years, imports from India have grown by 9.1 per cent CAGR, indicating a substantial opportunity for India to strengthen its presence in the US market.  

However, recent trade tensions have prompted US companies to partially shift away from China, with the market shares of Vietnam and Bangladesh increasing by 7.8 per cent and 3 per cent, respectively. Both Vietnam and Bangladesh enjoy preferential trade agreements with the US for textiles, which include duty concessions.  

To achieve this, India should pursue a zero-for-zero trade agreement with the US for textile and apparel products, incorporating necessary safeguards for sensitive items, states CITI. This agreement would provide a level playing field for Indian exporters, enabling them to compete effectively with Vietnam and Bangladesh, the trade body adds.

Furthermore, to ensure a balanced trade relationship given India's reliance on cotton imports from the US, CITI recommends a duty-free access mechanism with quota safeguards.