India to get same terms as Bangladesh on textiles in final US deal, Piyush Goyal says
If an Indian company sources yarn and cotton from the US, manufactures garments, and exports them back to the American market, those products will qualify for duty-free access, similar to the benefit available to Bangladeshi firms
New Delhi, February 12, 2026, dmanewsdesk: India will receive concessional duty access for garments made using American yarn and cotton under its trade agreement with the United States, similar to benefits currently available to Bangladesh, Commerce and Industry Minister Piyush Goyal said on Thursday.
Under existing arrangements, the US has reduced reciprocal tariffs on Bangladeshi goods to 19 per cent, with garments attracting zero duty only if produced using US cotton and man-made fibres. Otherwise, Bangladeshi garments face a combined levy of 31 per cent. Goyal said India will receive comparable treatment in the final agreement.
“Bangladesh ko jo mila hai, wo Bharat ko bhi milne wala hai final agreement me (Whatever Bangladesh has got, India will also get the same in the final agreement,” he told reporters.
Explaining the mechanism, Goyal said Indian companies that procure yarn and cotton from the US, manufacture garments, and re-export them to the American market will be eligible for duty-free access, as is the case for Bangladeshi exporters. He added that such provisions already exist in the US-Bangladesh agreement and “it will be in our agreement also”.
The minister stressed that the arrangement would not harm Indian cotton farmers, noting that US cotton exports are limited to about USD 5 million, while India’s target is USD 50 billion.
Goyal also said that farmer interests have been safeguarded in the broader trade negotiations, with around 90–95 per cent of Indian agricultural products excluded from the deal. He added that Indian textile and apparel exporters are expected to benefit from zero-tariff access when using US cotton once the agreement is signed.
India and the US have finalised the framework for the first phase of the bilateral trade agreement, which is likely to be implemented in March.
The comments come amid political criticism, with Leader of Opposition Rahul Gandhi alleging that the interim deal amounted to a “wholesale surrender” that compromised India’s energy security and farmers’ interests.
Separately, addressing a Medtech, innovation and startup event, Goyal said India’s free trade agreements would provide significant market access at concessional duties for the domestic medical devices industry. He noted that some Indian medical devices would receive duty concessions under certain FTAs.
“We are opening developed markets through the nine FTAs, which cover 38 countries with rich people and high per capita incomes,” he said.
Goyal suggested exploring locations in states such as Rajasthan and Uttar Pradesh to develop a medtech zone similar to the Andhra Pradesh MedTech Zone, adding that the National Industrial Corridor Development Corporation could consider reserving 50–100 acres for medical device units.
Source: The Telegraph online
