Vice President CP Radhakrishnan has expressed strong confidence that a significant trade agreement between India and the United States is on the horizon, stating that a breakthrough is merely a matter of time. He made these remarks while addressing the pressing concerns of India's apparel export sector.
Assurance on Overcoming High US Tariffs
Speaking at an event organized by the Apparel Export Promotion Council (AEPC) to honor exporters, the Vice President acknowledged the severe challenges posed by high American tariffs. The US had imposed an additional 25% tariff on Indian goods earlier this year, raising the total duty to a steep 50%. Radhakrishnan noted that the US remains the world's largest consumer of apparel and that these tariffs are significantly hurting Indian industry players.
He attributed part of the constraints to the broader geopolitical situation but conveyed a firm assurance from Commerce Minister Piyush Goyal. "Our commerce minister Piyush Goyal Ji has assured me that he is trying his best and it will be done. It is just a matter of time," the Vice President stated, highlighting the Centre's dedicated efforts to secure a favorable deal.
Resilient Exports and Ambitious $100 Billion Vision
Despite the tariff barriers, Indian merchandise exports to the United States demonstrated remarkable resilience, registering a growth of over 22% in November. In the last financial year, the broader textile and apparel export sector recorded shipments worth $37.75 billion, marking an annual growth of nearly 10%.
Radhakrishnan outlined Prime Minister Narendra Modi's transformative vision for the sector, aiming to establish it as a "global powerhouse." The ambitious target is to achieve $100 billion in textile exports by 2030, with the apparel segment expected to contribute a substantial 40% of this total.
Navigating Global Competition Through FTAs
The Vice President candidly addressed the rising competition from countries like Bangladesh, Cambodia, and Laos. He emphasized that Free Trade Agreements (FTAs) are crucial for India to maintain and enhance its competitive edge in the global market.
Pointing to recent diplomatic successes, he said, "We tasted success with the free trade agreement with the United Kingdom and I am sure we will have another FTA with the European Union soon." Expressing optimism for the apparel sector, Radhakrishnan predicted that exporters could potentially double their exports within the next three years, bolstered by such strategic trade partnerships.
