India to Gain Yarn and Cotton-Related Trade Advantages
The Commerce Ministry stated that India will gain yarn and cotton-related trade advantages akin to those granted to Bangladesh, indicating a possible enhancement for the nation’s textile and apparel exporters.
The ministry stated that Indian textile and apparel exporters are anticipated to receive zero-tariff advantages on garments produced with US-origin cotton once the agreement is finalized. The action is viewed as a continuation of efforts to enhance bilateral trade relations between India and the United States while maintaining competitive equality with regional competitors.
The explanation emerges during political clashes regarding the trade agreement. In response to Rahul Gandhi, Leader of Opposition in Lok Sabha, Union Commerce Minister Piyush Goyal stated that claims regarding Bangladesh obtaining better terms were false.
“He propagated another falsehood in the Parliament that Bangladesh has gained greater advantages from trade than India. Bangladesh has a provision that allows for raw materials bought from America to be processed into cloth and exported without incurring any reciprocal tariffs.
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India possesses the same facility and will also receive it. At this moment, our framework agreement is being constructed. Once the temporary agreement is completed, you will notice this in the details,” says Goyal.
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Goyal also emphasized that local agricultural interests have been safeguarded within the larger framework. Approximately 90 percent to 95 percent of agricultural goods generated in India have been excluded from the trade agreement with the US, which safeguards farmers' interests.
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The progress comes after a US-Bangladesh joint statement issued on 9 February 2026 that declared tariff relief for Dhaka. The announcement indicated that the US will reduce its reciprocal tariff on Bangladeshi products to 19 percent and grant zero-duty access “exclusively for garments produced with US-sourced cotton and synthetic fibers.”