US to Grant India Duty-Free Access for Textiles, Similar to Bangladesh Arrangement

India is set to secure textile trade benefits from the United States similar to those enjoyed by Bangladesh, Union Commerce Minister Piyush Goyal said.

The agreement would allow Indian garment exporters to gain zero-tariff access to the US market for clothes manufactured using American cotton once the deal is formalised.

Goyal explained that the India-US interim trade deal includes a provision for duty benefits if cotton yarn is imported from the United States. Although the joint statement and White House factsheet did not explicitly mention this clause, the Commerce Minister confirmed its inclusion.

Responding to claims by Congress leader Rahul Gandhi that Bangladesh received better benefits, Goyal said India would receive identical advantages. “Just as Bangladesh has a facility where raw material purchased from America can be processed into cloth and exported at zero reciprocal tariff, India will also have the same facility,” he stated.

The minister noted that the “fine print” of the agreement will become clearer once the interim framework is finalised. The deal, announced last week by US President Donald Trump, reduces reciprocal tariffs on Indian goods from 25 per cent to 18 per cent and removes the 25 per cent punitive duty imposed on Indian oil imports from Russia.

Some Indian farmers have expressed concerns that concessions in agriculture may have been made to secure lower tariffs. Goyal countered that Indian exporters would benefit significantly, with potential expansion of exports to the US, EU, UK, Switzerland, Norway, and Australia. “The Rs 5 lakh crore that we export today could grow to Rs 10 lakh crore,” he said, adding that Rahul Gandhi should apologise to farmers, fishermen, MSME workers, and Vishwakarmas for spreading misinformation.