India to get zero-tariff textile access to US similar to Bangladesh, says Goyal

India will also get textile-related trade benefits similar to Bangladesh from the US, said Union Commerce and Industries Minister Piyush Goyal, referring to the zero-tariff access provided to Bangladesh by the Trump administration under the US-Bangladesh trade deal for special textile and apparel products made with US cotton and man-made fibre.

"India also has the same facility, and India will also get it. Right now, our framework agreement is being made. When the interim agreement is finalised, then you will get to see this in the fine print," Goyal told reporters on Thursday (February 12).

‘Rahul lied in Parliament’

The Union Minister lashed out at the Leader of the Opposition in the Lok Sabha, Rahul Gandhi, over his claim that Bangladesh got more advantage than India in its bilateral trade agreement with the US.

Also Read: Boeing, Nvidia and more: India can easily buy $500-B US goods, says Goyal

"He (Rahul Gandhi) spread another lie in the Parliament that Bangladesh has got more benefits from the trade than India. Just as Bangladesh has a facility that if raw material is purchased from America, then if you process it and make cloth and export it, then it will be available at zero reciprocal tariff," added Goyal as quoted by ANI.

He further stated that Rahul should apologise to the farmers of India, fishermen and workers working in MSMEs.

What SBI Research report said

A report by SBI Research stated that the US imports around USD 7.5 billion of textile imports from India and around the same quantity from Bangladesh.

Also Read: US trade deal: 'India has accepted opposite of what it fought for at WTO'

"The recent trade deal between US-Bangladesh has reduced the tariffs on Bangladesh goods to 19 per cent. However, a certain clause that allows certain quantity of textile and apparel goods from Bangladesh imported at zero reciprocal tariff rate depending on the quantity of cotton and manmade fibre textile inputs imported from US has raised suspicion that it can harm Indian textile exporters as Bangladesh's imports could become more competitive for the US," stated the report as quoted by ANI.

How Indian textile sector gets affected

The US market remains India’s largest destination for textile exports, with roughly 30 per cent of its textile and apparel consignments headed there, reported India Today.

The report further stated that textile exporters had briefly celebrated after India and the US concluded a trade arrangement under which President Donald Trump cut tariffs to 18 per cent from an earlier 50 per cent.

Also Read: India-US trade deal: Zero tariffs on gems, pharma, farm produce, says Goyal

The reduction placed India ahead of competitors such as Bangladesh and Pakistan at 19 per cent, Vietnam at 20 per cent, and China at 30 per cent, offering what appeared to be a clear pricing edge.

That advantage narrowed within days when Bangladesh finalised its own deal with Washington, lowering duties to 19 per cent from 20 per cent.

Issue of zero-duty access for Bangladeshi garments

The sharper concern, however, centered on a provision granting zero-duty access for Bangladeshi garments manufactured using US cotton.

Under this clause, apparel produced with American cotton can enter the US market without tariffs. With Indian shipments facing an 18 per cent levy, Bangladeshi goods made under the exemption could undercut them on price.

Also Read: India fully protects sensitive wheat, rice, poultry under trade pact with US: Piyush Goyal

To qualify, Bangladesh would need to step up purchases of US cotton, potentially reducing sourcing from existing suppliers.

India is currently among Bangladesh’s top three cotton suppliers, and any shift could weigh on Indian exporters. Industry observers say a comparable concession for India would calm domestic concerns.