India plans to leverage a proposed bilateral trade agreement with the United States to boost textiles exports, in anticipation of potential reciprocal tariffs. This move comes as the US government has indicated its intent to implement such tariffs, particularly against nations with perceived high import duties, such as India.
The Indian government's strategy focuses on mitigating the negative effects of any US tariffs through favorable terms secured in the trade agreement. Key industries targeted for export growth include textiles, aluminum, and steel.
According to the research organization, Global Trade Research Initiative (GTRI), the textile sector is especially vulnerable due to the significant difference in tariff rates between India and the US. To mitigate their impact, India plans to establish a trade framework to safeguard its export-oriented industries from the potential US trade measures.
