According to the ministry, Indian textile and apparel exporters are expected to get zero-tariff benefits on garments made using US-origin cotton once the deal is signed. The move is seen as part of ongoing efforts to strengthen bilateral trade ties between India and the United States while ensuring competitive parity with regional players.
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The clarification comes amid political sparring over the trade deal. Responding to Lok Sabha Leader of Opposition Rahul Gandhi, Union Commerce Minister Piyush Goyal said allegations that Bangladesh had secured better terms were incorrect.
“He 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. 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…” Goyal said.
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Goyal also reiterated that domestic agricultural interests have been protected under the broader arrangement. “Around 90% to 95% of farm products produced in India have been left out of the South Asian nation’s trade deal with the US, in which the interests of farmers have been protected,” he said.The development follows a US-Bangladesh joint statement released on 9 February 2026 announcing tariff relief for Dhaka. The statement said the US will cut its reciprocal tariff on Bangladeshi goods to 19% and provide zero-duty access “only for garments made with US-origin cotton and man-made fibres”.
The proposed parity for India is expected to ease concerns within the domestic textile industry that Bangladesh could gain a competitive edge in the US market under the revised tariff structure.