As trade negotiations between India and the United States continue, India is reportedly considering shifting the procurement of certain goods, including synthetic fibres, to the U.S. This move is aimed at reducing India’s trade surplus with the country, according to sources familiar with the matter.
A government official indicated that India is assessing opportunities to increase imports from the U.S. as part of a broader strategy to address trade imbalances. One potential change under review is the reduction of high-end fibre imports from China in favor of U.S. suppliers.
“This is one approach to strengthening trade relations,” the official stated. Additionally, India is evaluating trade relationships with countries where it has a trade deficit to explore potential adjustments in sourcing.
The development follows an announcement by U.S. President Donald Trump, stating that, beginning April 2, reciprocal tariffs would be applied to all trading partners, including India.
Representatives from the textile industry noted that certain specialty and high-tenacity fibres, which are currently sourced from China and not manufactured domestically in India, could potentially be imported from the U.S. instead.
India’s merchandise trade surplus with the U.S. has been expanding, reaching $35.33 billion in the fiscal year 2023-24. In response, both countries have adopted a coordinated approach to enhance market access, integrate supply chains, and promote balanced trade in goods and services.
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