India is set to receive zero-tariff access for certain textile exports to the United States under the upcoming interim trade agreement, Union Commerce and Industry Minister Piyush Goyal has said.
Speaking about the proposed deal with the United States, Mr. Goyal clarified that Indian garment exporters will get duty-free access for products manufactured using cotton or yarn imported from the US. This arrangement is similar to the benefits recently extended to Bangladesh, which allows its garments made from American raw materials to enter the US market without import duty.
The minister dismissed opposition criticism that Bangladesh had secured better terms. He said India would receive comparable benefits once the agreement is formally concluded. According to him, even if some clauses are not explicitly mentioned in initial fact sheets or statements, the final trade framework will ensure equal treatment for Indian exporters.
The interim trade deal follows recent discussions between Prime Minister Narendra Modi and US President Donald Trump, aimed at strengthening economic ties between the two countries. The agreement is expected to reduce reciprocal tariffs on a range of Indian exports, including textiles, leather goods, gems, jewellery, and pharmaceuticals.
However, the zero-tariff benefit for garments will apply only if exporters meet specific sourcing conditions. This typically means following a “cotton-forward” rule, where the raw cotton or yarn must originate from the US to qualify for duty-free entry.
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