India’s apparel, footwear and chemicals sectors are set for a significant export push following the conclusion of a bilateral trade pact with the United States, industry officials and government sources said. The agreement is expected to ease tariff barriers and improve market access for Indian manufacturers in one of their largest overseas destinations.
Under the pact, duties on a range of labour-intensive and value-added products are expected to be reduced or eliminated, boosting the competitiveness of Indian goods against rivals from other exporting nations. Apparel and footwear exporters, who had faced higher costs in the US market in recent years, see the move as a major opportunity to regain lost ground and scale up shipments.
The chemicals sector is also likely to benefit, with improved access for specialty chemicals, intermediates and downstream products used across pharmaceuticals, agriculture and manufacturing. Exporters say the agreement could help diversify product offerings and deepen long-term supply relationships with US buyers.
Industry bodies estimate that the tariff relief and clearer trade rules could translate into higher order inflows, increased capacity utilisation and fresh investments across the three sectors. The pact is also expected to support job creation, particularly in apparel and footwear, which are among India’s largest employment-generating industries.
The government said the agreement aligns with its broader strategy to expand exports, strengthen trade ties with key markets and position India as a reliable global manufacturing and sourcing hub.