The India–US deal opens the $118-billion U.S. textiles market for Indian MSMEs, but the current 18% U.S. duty remains until the pact is fully implemented. Once removed, Indian apparel and made-ups will gain a major cost advantage over Bangladesh, China, Pakistan, and Vietnam, boosting export orders and pricing strength. MSMEs also benefit from affordable U.S. intermediates, more value-added production, increased investments, and stronger momentum toward India’s $100-billion textile export target for 2030.
Current vs Future Tariff Impact
Current (Today)
- Indian textiles face 18% duty in the U.S.
- Higher landed cost → weaker price competitiveness
- Tough competition from Bangladesh/Vietnam
- MSMEs lose orders due to a price disadvantage
Future (After Agreement Is Implemented)
- 18% tariff removed/reduced
- Indian apparel & made-ups become the cheapest among major suppliers
- Buyers shift sourcing to India
- MSMEs get larger export volumes, better margins, and new investments
🔗 Source: Press Information Bureau