Fashion
India unlocks $30-trn US market for exports; Silk gets 0% duty
The deal opens enhanced opportunities in the US silk products market valued at $113 billion.
The India-US trade deal has secured sustained preferential access for Indian exports in the US market, with tariffs on export of textiles, leather, footwear and home décor items, and machinery and parts cut to 18 per cent.
Silk gets zero per cent duty access.
RMG, carpets, artificial staple fibres, bedspreads, bleached fabrics, curtains, yarn, baby clothing, bed linen and blankets will benefit.
Major export categories benefiting from the reduced tariff structure include readymade garments, carpets, man-made textiles, cotton textiles, artificial staple fibres, bedspreads, bleached fabrics, curtains, yarn, baby clothing, bed linen, blankets, gloves and related products.
The agreement is expected to provide a significant boost to the textile sector, leveraging economies of scale and strengthening small businesses and production clusters.
Enhanced market access is likely to support job creation and reinforce India’s position as a competitive and reliable supplier in global textile value chains, an official release from the Indian government said.
The agreement delivers significant gains for India’s leather and footwear sector, positioning the country as most-preferred supplier to the US market. It offers better access to a US market for these products valued at $42 billion.
Major export categories in this sector expected to benefit include finished leather, leather footwear and footwear components.
Given the labour-intensive nature of the leather and footwear industry, enhanced market access is expected to support manufacturing growth and employment generation, particularly across micro, small and medium enterprises (MSMEs) and production clusters.
It opens opportunities in the US home décor market valued at $52 billion. Products benefiting from the reduced tariff structure include wood and furniture items, pillows, cushions, quilts, comforters, non-electrical lamps and related furnishing products.
In addition, zero per cent duty access has been secured for products like seats, chandeliers, illuminated signs and parts of lamps covering a US market worth $13 billion.
Tariffs on export of machinery and parts (excluding aircraft components) have also been reduced from 50 per cent to 18 per cent, opening enhanced opportunities in the US machinery market valued at $477 billion. India’s exports in this segment stand at $2.35 billion now, and the reduced tariff structure is expected to strengthen the competitiveness of Indian manufacturers across a wide range of machinery and component categories.
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