Commerce Minister Piyush Goyal on Thursday said India will receive the same zero reciprocal tariff benefits for textile exports to the United States as Bangladesh under the upcoming interim trade agreement, pushing back against concerns that the neighbouring country had secured an advantage.
Speaking in New Delhi, Goyal clarified that garments made using American cotton or man-made fibre will qualify for zero reciprocal tariffs once the India-US framework agreement is finalised. “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,” he said.
Bangladesh deal sparks political row
The clarification follows the February 9 agreement between the US and Bangladesh, under which reciprocal tariffs were reduced to 19 per cent from the earlier 20 per cent. The arrangement also allows zero-tariff access for certain textile and apparel products made using US cotton and synthetic fibre.
The clause triggered criticism from sections of the Opposition, with Rahul Gandhi alleging in Parliament that Bangladesh had secured more favourable trade terms.
Goyal responded sharply. “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,” the minister said.
He added that Rahul Gandhi should apologise to farmers, fishermen, MSME workers and Vishwakarmas for what he described as misleading claims.
Textiles, cotton and export targets
The textile sector forms a critical part of India’s export basket to the US. According to SBI Research, the US imports around USD 7.5 billion worth of textiles from India, roughly the same as from Bangladesh.
The report noted that Bangladesh’s zero-tariff clause tied to US cotton inputs had raised concerns that its garments could become more competitive in the American market.
Goyal, however, underlined that the arrangement protects domestic interests. India produces nearly 23 per cent of the world’s cotton, and the minister stressed that the proposed deal would safeguard 90–95 per cent of farmers’ output while possibly doubling textile exports to USD 60 billion and generating rural employment.
India already imports high-quality US cotton (4.13 million bales in 2025) to meet demand beyond domestic supply, particularly for premium export segments.
Tariff reset after Modi-Trump call
The broader India-US trade negotiations gained momentum after a phone call on February 2 between Prime Minister Narendra Modi and US President Donald Trump, which led to the announcement that talks on the trade deal had concluded.
The Trump administration had earlier imposed tariffs of up to 50 per cent on Indian goods entering the US since August 2025. Following the latest engagement, those tariffs have been reduced to 18 per cent.
The proposed bilateral trade agreement (BTA), first floated in February 2025, aims to expand trade between the two countries from USD 191 billion to USD 500 billion by 2030.
With the interim agreement’s fine print expected in March, the government maintains that Indian textile exporters will stand on equal footing with Bangladesh in the US market.