India is likely to receive yarn and cotton-related trade benefits similar to those given to Bangladesh under its trade arrangement with the United States, Union Commerce Minister Piyush Goyal has said. This means Indian garment exporters could get zero-duty access to the US market for clothes made using American cotton once the final trade agreement is signed. This is expected to support India’s textile and apparel exporters and help them stay competitive with regional players like Bangladesh.
Parity with Bangladesh, not disadvantage
Responding to claims that Bangladesh had secured better terms, the minister rejected the allegation and said India would get the same treatment. “He (Rahul Gandhi) spread another lie in the Parliament that Bangladesh has got more benefits from the trade than India,” Goyal said, referring to Congress leader.
Explaining the provision, Goyal added, “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. India also has the same facility and India will also get it.”
The commerce minister clarified that while this clause may not be clearly visible in the interim framework agreement released recently, it will be part of the final deal. “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. This clarification comes a day after the Trump administration revised its factsheet on the US-India trade deal, stepping back from some earlier claims. Officials now suggest that more concessions could still be on the table for India as negotiations continue.
Relief for a labour-intensive sector
If the agreement goes through as expected, it will come as a major relief for India’s labour-intensive textile and apparel industry. The sector had faced fresh pressure after the US-Bangladesh trade deal, which raised fears of India losing market share.The United States is India’s largest export market for textiles and apparel. Zero-duty access for garments made with US cotton could help Indian exporters increase shipments and protect jobs across the value chain.
Goyal also indicated that the benefits would not be limited to textiles alone. He said trade agreements with the US, the European Union and the UK are expected to boost exports from agriculture and marine sectors as well, potentially adding Rs 10 lakh crore to exports and increasing farmers’ incomes. |
