New Delhi, Feb 12 (NationPress) India’s trade surplus with the US is projected to surpass $90 billion annually following the recent trade agreement, contributing an additional $45 billion to the trade balance, representing 1.1 percent of the GDP and yielding savings of $3 billion in foreign exchange reserves, according to a report from SBI Research released on Thursday.

The trade agreement with the US, coming on the heels of a series of trade agreements with the EU and the UK, positions India strategically, allowing both the nation and its exporters to significantly benefit without compromising key interests, the report indicates.

“Our initial estimates suggest that Indian exporters could boost their shipments of the top 15 goods to the US by $97 billion annually. Including additional items, the total potential could easily exceed the $100 billion threshold,” stated Dr. Soumya Kanti Ghosh, Group Chief Economic Adviser at the State Bank of India.

Moreover, the US holds a yearly potential for over $50 billion in imports from India (excluding services).

India’s trade surplus with the US stood at $40.9 billion in FY25 and $26 billion in FY26 (April-December), and it is anticipated to exceed $90 billion annually, Ghosh noted.

Regarding the US-Bangladesh trade deal, the report mentions that the US imports approximately $7.5 billion worth of textiles from India and a similar amount from Bangladesh; however, the types of goods imported from each country vary.

For instance, the US imports a greater quantity of apparel (non-knitted) from Bangladesh, while made-up textiles from India account for a larger share.

The recent agreement between the US and Bangladesh has reduced tariffs on Bangladeshi goods to 19 percent.

However, a clause allowing a specific quantity of textile and apparel goods from Bangladesh to enter the US at a zero reciprocal tariff rate, contingent on the quantity of cotton and man-made fiber textile inputs imported from the US, has raised concerns that it may negatively affect Indian textile exporters, as Bangladeshi imports could become more competitive.

“Nevertheless, the costs associated with importing from the US are likely to be significantly higher than those from India, thereby preserving India’s competitive advantage,” the report asserts.

If US cotton were to replace 10 percent of our cotton exports and 2 percent of our man-made fiber exports to Bangladesh, the resultant loss for India would be a mere $1 billion.

“Additionally, the latest EU deal has opened up a $260 billion textile market for India with zero duty on textile imports,” the report highlights.