India To Get Yarn, Cotton Trade Benefits On Par With Bangladesh
India is set to receive yarn and cotton related trade benefits similar to those extended to Bangladesh, the Ministry of Commerce has said, a move that could support the country’s textile and apparel exporters in the US market.
According to the ministry, Indian exporters are expected to qualify for zero-tariff access on garments made using US-origin cotton once the proposed trade arrangement is finalised. The measure is part of broader efforts to strengthen bilateral trade ties with the United States while maintaining competitive parity with regional suppliers.
The clarification comes amid political debate over the terms of the evolving trade framework. Responding to remarks by Lok Sabha Leader of Opposition Rahul Gandhi, Commerce and Industry Minister Piyush Goyal said claims that Bangladesh had secured more favourable terms were incorrect. He stated that India would receive a similar facility under which garments produced from US-sourced raw materials could be exported at zero reciprocal tariff once the interim agreement is concluded and detailed provisions are finalised.
Goyal also emphasised that domestic agricultural interests have been safeguarded under the broader trade discussions, noting that the majority of farm products have been kept outside the scope of concessions.
The development follows a US–Bangladesh joint statement issued on 9 February 2026, under which Washington agreed to reduce reciprocal tariffs on Bangladeshi goods to 19% and allow zero-duty access for garments made with US-origin cotton and man-made fibres.
For India, securing comparable provisions is expected to ease industry concerns that Bangladesh could gain a pricing advantage in the US market under the revised tariff structure, helping preserve competitiveness for Indian textile and apparel exports.
