India to match Bangladesh Textile Terms in US Trade Deal: Goyal

February 20, 2026 | By Textile Sphere India

Duty relief likely for garments made with US yarn and cotton.

India will secure concessional duty access for garments made using American yarn and cotton under its trade agreement with the US, similar to benefits currently extended to Bangladesh, Commerce and Industry Minister Piyush Goyal said on Thursday.

The US presently offers Bangladesh reduced tariffs, with garments attracting zero duty only when produced using US cotton and man-made fibres. A Bangladeshi garment otherwise faces a 31 per cent levy, comprising 12 per cent most-favoured nation duty and a 19 per cent reciprocal tariff. If US fibres are used, the duty drops to 12 per cent.

“Bangladesh kojo Mila hai, wo Bharat ko bhi milnewala hai final agreement me (Whatever Bangladesh has got, India will also get the same in the final agreement,” Goyal told reporters, adding that the provision would be part of the fine print of the India-US pact.

He explained that Indian companies sourcing yarn and cotton from the US, manufacturing garments, and re-exporting them to the American market would receive duty-free access, similar to Bangladeshi firms. The minister also clarified that the arrangement would not adversely affect Indian cotton farmers, noting the US has limited cotton production.

The proposed benefit will come into effect after India and the US sign the legal agreement for an interim trade deal, expected by mid-March. The two countries have finalised a framework for the first phase of the bilateral agreement, which will not impose quotas on raw material imports such as cotton.

Goyal said the majority of agricultural products produced by Indian farmers—including dairy, cereals, poultry, and several fruits and vegetables—remain outside the trade deal. Responding to criticism from opposition leaders, including Rahul Gandhi, he asserted that India has opened select sectors in a calibrated manner without compromising farmers’ interests.

Meanwhile, at a medtech innovation event, the minister said India’s free trade agreements would provide expanded market access for domestic medical device manufacturers. He added that new medtech zones could be developed in states such as Rajasthan and Uttar Pradesh, with land support from the National Industrial Corridor Development Corporation.

Commenting on the proposed agreement, Apparel Export Promotion Council Chairman A Sakthivel said India is expected to sign the pact shortly and is likely to receive benefits comparable to those offered to Bangladesh’s textile industry.

Source: The Pioneer

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