India-US trade deal: Tiruppur expects garment exports to double to ₹30,000 crore—why Tamil Nadu textile hub is upbeat

In Tamil Nadu's Tiruppur, garment exporters expect shipments to the US to double to about ₹30,000 crore in the next three years, following the recently announced India-US trade framework, PTI reported on 8 February.

Citing industry executives, the report said that the exporters believe the sector could likely generate nearly 500,00 additional jobs as orders and production expand. The textile town of Tamil Nadu is located nearly 450 kilometres west of Chennai.

The development comes after New Delhi and Washington, on 7 February, announced the finalisation of the framework for the first phase of the Bilateral Trade Agreement (BTA). Under the proposed agreement, both sides will be slashing import duties on a variety of goods to boost bilateral trade.

Tiruppur exporters welcome the trade agreement

Welcoming the move, Tiruppur Exporters' Association president KM Subramanian told PTI that the deal with the US assumes significance as it will provide Tiruppur, the textile town of Tamil Nadu, huge growth in the next five years. He further added that currently, the garment exports from Tamil Nadu are valued at ₹15,000 crore. This is expected to double over three years after the agreement.

Subramanian further stated that the impact of the deal is likely to be seen in the next three months, following which he believed that they would be able to witness strong growth for India-made garments, which will be exported from Tamil Nadu's textile hub.

Citing another entrepreneur, the report said that the deal with the US would help in bringing more orders from the country to Tamil Nadu. He said that earlier, some of the orders were going to Bangladesh and some other countries.

India-US trade deal

On 2 February, US President Donald Trump announced a trade deal with India after months of negotiations. Under the proposed deal, Washington planned to slash tariffs on Indian goods to 18% from the previously announced 50% in August 2025. This came in exchange for New Delhi halting its purchase of Russian crude oil, a previous sticking point between the two sides, which prompted Trump to impose additional 25% tariffs on all Indian goods.

The framework under the deal was finalised on 7 February, and the deal is likely to be signed in March. It is, however, likely to come into effect in the coming days, once the White House signs an executive order, Commerce Minister Piyush Goyal said on Monday.

Key points under the deal

1. Under the proposed framework, New Delhi will purchase $500 billion worth of US goods, including energy products, precious metals, and technology products, among others, over the next five years.

2. India will lower or remove tariffs on all industrial goods, along with US farm and food items like dried distillers' grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wine, and spirits.

3. Washington will impose 18% tariffs on Indian goods, including apparel and textiles, leather and footwear, organic chemicals, and artisanal products, among others.

4. Washington will also remove tariffs on some aircraft and aircraft parts from India.

5. The two sides will continue negotiating the BTA to open markets for trade further. During those negotiations, Washington will consider New Delhi's request to lower tariffs on Indian goods.