India-US FTA to benefit 4.5 crore people in the T&A sector: Anil Rajvanshi, President, Reliance Industries

The India-US FTA serves as a vital lifeline for the 4.5 crore people employed within the textile and apparel (T&A) sector, emphasizes Anil Rajvanshi, President, Reliance Industries.  The deal secures a stable export corridor, enabling a transition from low-margin commodity trade to high-value apparel partnerships, he notes. Projections suggest, the deal could boost garment exports to the US from the current $6 billion to $10 billion within four years.

Under the newly finalized framework, United States import duties on Indian textile and apparel goods will be capped at 18 per cent, a decisive reduction from the previous effective peak of 50 per cent that included punitive levies. This tariff rationalization is projected to restore price competitiveness for Indian exporters against regional rivals such as Vietnam and Bangladesh, who currently face comparable or higher barriers in the American market.

To secure these concessions, India has committed to a $500 billion procurement plan of US goods over five years, including energy and high-tech inputs. While challenges remain regarding reciprocal access for US cotton, the integration of blockchain-based traceability in Indian mills is expected to meet the stringent transparency standards required by major American retailers.