This development translates to an extra $45 billion boost annually – roughly 1.1% of GDP – alongside $3 billion in forex reserve efficiencies.

Building on successes with Europe and Britain, the US pact catapults India into a commanding global trade position. Exporters benefit handsomely, with safeguards intact for vulnerable industries.

Dr. Soumya Kanti Ghosh, SBI’s top economist, forecasts top-15 product exports reaching $97 billion to the US in the first year, potentially topping $100 billion overall. US imports into India, sans services, may surpass $50 billion.

Historical data underscores the momentum: FY25 surplus at $40.9 billion, FY26 (Apr-Dec) at $26 billion. Projections now eye sustained highs above $90 billion.

The spotlight also falls on textiles amid the US-Bangladesh deal. The US sources $7.5 billion in apparel from each, but product mixes differ – Bangladesh leads in non-woven garments, India in others.

Bangladesh gains a 19% tariff cut and zero-duty perks for US-sourced fibers. Fears of Indian market share erosion persist, but SBI counters that US raw materials cost Bangladesh more than Indian alternatives.

A hypothetical shift of just 10% cotton and 2% man-made fibers would dent India by only $1 billion – negligible in the grand scheme.

Europe’s recent zero-duty gateway to $260 billion in apparel markets further fortifies India’s textile powerhouse status, ensuring robust growth ahead.